Wallet Connector System for Payment Interoperability
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Solution Overview
Problem
Existing digital wallet systems face incompatibility issues due to different encoding schemes used by various payment systems, preventing payments from one system to be made to accounts in another system, limiting interoperability and user convenience.
Innovation Solution
A wallet connector system utilizing an API gateway and mapping databases to mediate payments between incompatible systems by identifying and linking encoding schemes, applying payment and acceptance rules, and leveraging payment networks for clearing-and-settlement or switching-and-routing processes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If different encoding schemes are used by various payment systems, then each system can maintain its own security and operational standards, but interoperability between payment systems is prevented
Solution Approach 1:
The patent employs an intermediary translation layer that converts between different payment system encoding schemes. When a payment request is made between incompatible systems, the intermediary translates the source system's encoding format into the target system's expected format, enabling seamless interoperability while preserving each system's native security and operational standards without requiring direct compatibility between them
Solution Approach 2:
The patent creates a universal payment interface that can handle multiple encoding schemes through a single standardized gateway. This multi-functional interface accepts payments from various payment systems using their respective encoding formats and routes them appropriately, allowing one system to serve multiple payment networks while maintaining universal compatibility across diverse standards
2Ease of operation
If a digital wallet is designed to work with one closed loop payment system, then it can provide optimized functionality for that system, but it cannot be used to pay recipients in other payment systems
Solution Approach 1:
The digital wallet is designed with multi-functionality to support multiple payment systems simultaneously. It incorporates a universal interface that can process encoding schemes from different closed loop and open loop systems, allowing users to maintain a single wallet application that works across various payment networks while preserving optimized functionality for each specific system
3Adaptability or versatility
If payment systems use proprietary encoding schemes, then they can maintain control over their transaction protocols, but technology and other constraints prevent interoperability
Solution Approach 1:
The patent introduces an intermediary translation service that manages the complexity of interoperability externally. This mediator handles the conversion between proprietary encoding schemes, allowing each payment system to maintain its own transaction protocols and encoding standards while the intermediary layer absorbs the complexity of translating between them, preventing this complexity from burdening the individual payment systems themselves
Data Source
AI summary
Systems and computer-implemented methods of providing interoperability between incompatible payment systems may be provided. For example, a server may receive encoded data from a wallet server of the first closed loop payment system, the encoded data using an encoding scheme and being based on a digital encoding of a recipient. The server may identify a receiving institution of the second closed loop payment system based on the encoding scheme. The server may transmit the encoded data to the receiving institution and receive a response from the receiving institution. The response may include a recipient identifier and a recipient attribute. The server may mediate the payment from the sender closed loop account to the recipient closed loop account based on the receiving institution, the recipient identifier and the recipient attribute. For example, the server may perform clearing-and-settlement or switching-and-routing to mediate the payment.