Integrated Digital Wallet Payment Selection With Secure Token Storage

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Solution Overview

Problem

Existing digital wallet systems lack efficient, secure, and user-friendly methods for managing multiple payment mechanisms and identities, leading to friction and inefficiencies in transactions.

Innovation Solution

A system and method utilizing a digital wallet application that integrates authentication, secure storage of digital identity identifiers, and automated rules-based payment mechanism selection, leveraging blockchain technology for decentralized wallet ownership and AI/ML recommendations to optimize transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If multiple payment mechanisms are stored in a digital wallet, then payment flexibility and user benefit optimization are improved, but system complexity and security management become more difficult

Engineering Contradiction:

Improvepayment flexibilityVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent segments the digital wallet system into distinct functional modules: secure enclave for cryptographic key storage, token vault for payment token management, and distributed ledger for identity verification. This segmentation allows multiple payment mechanisms to be stored and managed independently, reducing overall system complexity while maintaining payment flexibility.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces digital tokens as intermediaries between the user's payment accounts and the merchant systems. These tokens represent payment credentials without exposing actual account information, simplifying the complexity of managing multiple payment mechanisms while maintaining versatility in payment options.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If digital identity identifiers are stored securely in the device, then authentication security is improved, but access friction and transaction time increase

Engineering Contradiction:

Improveauthentication securityVSAvoidtransaction time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary authentication by storing verified digital identity identifiers and cryptographic credentials in the secure enclave before transactions occur. This pre-authentication approach allows rapid transaction processing while maintaining security, as the heavy authentication work is performed in advance and the results are securely cached for quick retrieval.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent creates secure copies of authentication credentials in the form of digital tokens and cryptographic keys stored in the secure enclave. These copies enable fast authentication without requiring repeated verification of original credentials, reducing transaction time while maintaining authentication security through cryptographic protection.

Inventive Principle:

Principle #26Copying

3Productivity

If automated rules-based payment selection is implemented, then user benefit optimization is improved, but computational requirements and processing time increase

Engineering Contradiction:

Improveuser benefit optimizationVSAvoidcomputational requirements

Core Design Contradiction:

ProductivityVSUse of energy by moving object

Solution Approach 1:

The patent applies local quality by implementing lightweight rule-based payment selection logic within the mobile device's secure enclave, rather than requiring complex centralized processing. The system evaluates simple local criteria such as transaction amount thresholds, merchant category, and user-preferred payment methods to automatically select optimal payment mechanisms without heavy computational requirements.

Inventive Principle:

Principle #3Local quality

4Reliability

If distributed ledger technology is used for identity verification, then security and compliance are improved, but network communication overhead and transaction latency increase

Engineering Contradiction:

Improvesecurity and complianceVSAvoidtransaction latency

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent extracts critical identity verification data from the distributed ledger into local digital tokens stored in the secure enclave. Instead of querying the distributed ledger for every transaction, the system retrieves and caches verified identity information locally, maintaining security and compliance through cryptographic verification while dramatically reducing network communication overhead and transaction latency.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS12406252B2Systems and methods for integrated digital wallet payments

Publication Date: 2025.09.02 JPMORGAN CHASE BANK NA

AI summary

Systems and methods for integrated digital wallet payments are disclosed. Embodiments may store and manage the lifecycle of assets in a digital wallet and may provide artificial intelligence and/or machine learning based recommendations to provide the optimal frictionless and rewarding consumer authentication and payment experience. Embodiments may leverage blockchain technology that provides a single consumer solution with decentralized wallet ownership and a data-driven network orchestration for optimal payments. Embodiments securely store the payment instruments and may provide personal usage recommendations for the optimal outcome based on, for example, consumer preferences.