Virtual POS Token Device for Secure Mobile Transactions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing credit and debit card retail transaction systems require frequent maintenance and hardware updates, leading to significant costs for retailers, especially small ones, due to the need for secure communication with mobile devices and new technology standards, increasing the complexity and cost of point-of-sale (POS) terminals.
Innovation Solution
A token device with a secure element, web server module, and application module that executes data transaction protocols within a secure environment, allowing secure communication with a remotely located POS terminal over existing data networks, reducing the need for complex hardware and minimizing fraudulent transaction risks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional POS terminals are used to execute transaction protocols, then secure communication with mobile devices is achieved, but hardware complexity and maintenance costs increase significantly
Solution Approach 1:
The patent extracts the transaction protocol execution functionality from the physical POS terminal hardware and relocates it to a virtual POS system in the cloud. The mobile device's secure element executes the transaction protocol remotely, eliminating the need for complex hardware at the point-of-sale location while maintaining security through remote authentication and encrypted communication channels.
Solution Approach 2:
The patent introduces a virtual POS system as an intermediary between the mobile device and the payment processor. This virtual intermediary handles all transaction protocol execution and security operations remotely, allowing the physical POS terminal to be simplified or eliminated while maintaining secure communication capabilities through network-based authentication.
2Reliability
If POS terminals are updated to support new technology standards, then security is improved, but maintenance costs and hardware replacement expenses increase
Solution Approach 1:
The patent implements a dynamic security model where security updates and protocol versions are managed remotely through the virtual POS system. The mobile device can receive software updates and protocol changes without physical intervention, allowing security to be improved dynamically in the cloud rather than requiring expensive hardware replacement at each location.
Solution Approach 2:
The patent creates a virtual copy of the POS terminal functionality in the cloud, replacing the need for physical POS hardware at each location. This virtual copy can be updated and maintained centrally, eliminating the need for retailers to invest in expensive hardware replacements while maintaining up-to-date security standards through software-based protocol execution.
3Reliability
If physical POS terminals are deployed at every location, then transaction execution is reliable, but hardware burden on retailers increases
Solution Approach 1:
The patent makes the mobile device universal by enabling it to perform multiple functions including payment processing, transaction protocol execution, and security authentication. The mobile device's secure element can execute various transaction protocols with different merchants, eliminating the need for dedicated physical POS terminals at each location while maintaining reliable transaction execution through the device's cryptographic capabilities.
Data Source
AI summary
The present invention relates to a token device for securely executing a data transaction. The token device comprises: a secure element; a web server module configured within the secure element and arranged to transmit data messages over a network; a terminal application module configured within the web server module; and an application module configured within the secure element. The terminal application module and the application module are arranged to execute the data transaction protocol as one or more data exchanges therebetween within the secure element, upon receipt of a service request data message, received over the network at the web server module from an authorized remotely located Point of Sale (POS) terminal. The web server module is subsequently arranged to generate a transaction response data message for transmission to the remotely located POS terminal, on successful completion of the transaction protocol.