Electronic Wallet Loyalty Data Communication via Intermediary
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Solution Overview
Problem
Current systems fail to effectively communicate loyalty program identification data during payment transactions, leading to inefficiencies in operating loyalty rewards programs and increased costs for merchants, as well as customer difficulties in managing multiple loyalty cards.
Innovation Solution
An electronic wallet system processes loyalty program identification data, assigns it to transaction data, and communicates it to relevant service providers, ensuring accurate program operation and reducing merchant expenses by eliminating the need for manual card presentation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If the merchant's POS device communicates transaction data to the transaction service provider, then the payment transaction is processed, but the loyalty rewards program identifier cannot be communicated to the transaction service provider
Solution Approach 1:
The patent introduces an electronic wallet application as an intermediary component that captures both the transaction data and the loyalty rewards program identifier. This intermediary then communicates both pieces of information to the transaction service provider, solving the problem of information loss without requiring the POS device to have direct loyalty program communication capabilities.
2Reliability
If the merchant operates the loyalty rewards program, then the program can be managed, but the merchant incurs expenses for operating a database and managing loyalty program identification data
Solution Approach 1:
The patent enables the transaction service provider to directly receive and process loyalty rewards program identifiers through the electronic wallet application. This self-service approach allows the loyalty program to be operated and managed by the transaction service provider rather than the merchant, eliminating the merchant's need to maintain separate databases and incur operational expenses.
3Ease of operation
If customers keep track of numerous rewards cards, then they can participate in loyalty programs, but it becomes troublesome and they may miss opportunities if cards are misplaced or forgotten
Solution Approach 1:
The patent merges multiple loyalty rewards program identifiers and transaction data into a single electronic wallet application. This consolidation allows customers to manage all their loyalty program information in one place rather than carrying multiple physical cards, significantly improving ease of operation and reducing the risk of losing loyalty benefits.
Data Source
AI summary
A computer-implemented method for providing loyalty program identification data associated with a payment transaction may include receiving, with an electronic wallet system, loyalty program identification data associated with a customer; receiving, with the electronic wallet system, first transaction data associated with a payment transaction involving the customer and a merchant; assigning, with the electronic wallet system, the loyalty program identification data to the first transaction data based on receiving the first transaction data; receiving, with the electronic wallet system, second transaction data associated with the payment transaction, wherein the second transaction data is received after the first transaction data is received; determining, with the electronic wallet system, whether the second transaction data corresponds to the first transaction data; and communicating, with the electronic wallet system, the loyalty program identification data based on determining that the second transaction data corresponds to the first transaction data. A system and computer program product are also discussed.