Augmented Reality Virtual POS for Lower Hardware Costs and Fraud Risk
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Solution Overview
Problem
Merchants, especially small ones or those in temporary or remote locations, face difficulties and costs in setting up traditional point of sale hardware, and requiring consumers to present cards increases fraud risk.
Innovation Solution
A system that enables transactions using a virtual point of sale through a consumer's mobile device, utilizing augmented reality to display a virtual point of sale icon, allowing transactions via a digital wallet without physical card exposure, and reducing the need for traditional hardware.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If traditional point of sale hardware is used, then transaction processing capability is provided, but hardware cost and setup complexity increase
Solution Approach 1:
The patent creates a virtual copy of the point of sale system that runs on a remote server rather than requiring physical hardware at the merchant location. The virtual POS system replicates all necessary transaction processing functions through software execution on cloud infrastructure, eliminating the need for expensive physical POS terminals while maintaining full transaction capability.
Solution Approach 2:
The patent replaces the mechanical/physical point of sale hardware system with a software-based virtual system. Instead of using physical card readers, cash registers, and terminal equipment, the system uses networked software applications that communicate through digital channels, substituting mechanical transaction processing with electronic software execution.
2Reliability
If physical card presentation is required, then transaction authentication is enabled, but fraud risk increases
Solution Approach 1:
The patent introduces a virtual intermediary layer between the consumer and the merchant that handles transaction authentication. Instead of directly exposing card information to the merchant, the system uses a secure virtual environment with tokenization and encrypted communication protocols that mediate the transaction process, reducing the risk of card information exposure while maintaining authentication capability.
Solution Approach 2:
The patent uses virtual representations of card data and transaction information rather than physical card copies. The system creates encrypted digital tokens and virtual card images that can be processed without exposing actual card numbers or magnetic stripe data, eliminating the fraud risk associated with physical card handling while preserving transaction authentication.
3Ease of manufacture
If virtual point of sale is implemented, then hardware cost is reduced, but system complexity increases
Solution Approach 1:
The patent designs the virtual POS system to perform multiple functions through a single integrated software platform. The system handles card processing, customer authentication, transaction recording, inventory management, and reporting all through one unified virtual environment, reducing the need for multiple separate software systems while managing complexity through consolidation.
Solution Approach 2:
The patent introduces a centralized virtual intermediary layer that manages all system complexity remotely. The server-based architecture consolidates complex authentication protocols, encryption mechanisms, and transaction processing logic in a centralized environment, shielding the simple merchant interface from underlying system complexity while maintaining security and functionality.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Reduces hardware and resource costs, enhances transaction security, and increases fraud prevention by eliminating the need for physical card presentation, while improving system reliability and processing time.
Implementation Method 1
the consumer device displays an icon representing the virtual point of sale in augmented reality
Data Source
AI summary
A merchant registers a geolocation for a virtual point of sale. A consumer points a consumer device at the geolocation, and an icon representing the virtual point of sale is displayed on the consumer device in augmented reality. The consumer selects the icon to initiate a transaction with a digital wallet on the consumer device.