Virtual Currency Exchange at Mobile Events
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Solution Overview
Problem
At mobile events, customers face challenges in exchanging virtual currency for goods or services without a network connection, leading to inefficiencies and lost investments due to non-refundable, non-exchangeable tokens that cannot be used for other items.
Innovation Solution
A mobile event payment (MEP) system that enables users and merchants to exchange virtual currency using a processor-based system, allowing for virtual currency delivery and assignment messages to facilitate transactions between user and merchant devices without needing a network connection, using near field communication and storing virtual currency on user devices for redemption.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment instruments (cash, tokens) are used at mobile events without network connection, then transactions can be conducted offline, but the system lacks flexibility and results in wasted unused tickets and loss of sales
Solution Approach 1:
The patent implements a digital copy of currency on mobile devices that functions like physical cash but with enhanced capabilities. The virtual currency system creates a digital representation that can be transferred, stored, and redeemed without physical tokens, enabling flexible offline transactions while maintaining reliability through local device storage and processing.
Solution Approach 2:
The system transitions from static physical tokens to dynamic digital currency that can be easily created, transferred, and redeemed. The virtual currency can be dynamically allocated to different merchants and events, and unused amounts can be automatically refunded or transferred, providing adaptability while maintaining offline transaction capability.
2Productivity
If customers purchase fixed amounts of tickets in advance at mobile events, then transactions can be completed quickly without network connection, but customers cannot adjust to actual usage and lose unused tickets
Solution Approach 1:
The system automatically recovers unused virtual currency by crediting it back to the customer's account or allowing transfer to other events. When customers don't use their full virtual currency allocation, the remaining amount is not lost but recovered and made available for future use, eliminating waste while maintaining quick transaction processing.
Solution Approach 2:
The system provides real-time feedback to customers about their virtual currency balance and usage patterns. This feedback mechanism allows customers to monitor their consumption and adjust their spending accordingly, while the system can automatically refund or transfer unused amounts, preventing loss and enabling informed decision-making during the event.
3Ease of operation
If virtual currency is stored on user devices for offline transactions, then flexibility and convenience are improved, but security and verification become more complex
Solution Approach 1:
The system uses an intermediary verification mechanism where mobile devices store cryptographic keys and transaction data, but actual verification occurs through secure communication with event servers when available. The intermediary layer handles complex security protocols locally, simplifying the user interface while maintaining robust verification through distributed trust mechanisms.
Data Source
AI summary
A method for initiating a virtual currency exchange includes a merchant computing device a) receiving a message including a user account identifier, payment credential data, and a request for an amount of virtual currency to be delivered; b) transmitting a message delivering the requested amount of virtual currency; and c) receiving a user assignment message that assigns to the merchant an amount of assigned virtual currency from the delivered virtual currency. Steps a, b, and c are performed while the merchant computing device is in a first physical location. The method also includes, subsequent to steps a, b, and c, connecting to a payment network while the merchant computing device is at a second physical location and transmitting, to a virtual currency payment system via the payment network, an assignment completion message including the user account identifier, a merchant account identifier associated with the merchant, and the assigned virtual currency.