Digital Wallet Payment Tokenization at Merchant POS Terminals
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Solution Overview
Problem
Current digital wallet transaction systems require users to physically carry their computing devices to access payment information, making transactions inconvenient and deterring users from utilizing digital wallet accounts.
Innovation Solution
The system allows users to access and select payment account information associated with their digital wallet accounts directly at a merchant system's point of sale terminal, enabling transactions without the need for a physical device through user verification and the generation of payment tokens for processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If payment information is stored on a user computing device and transmitted via wireless communication, then payment security is maintained, but user convenience deteriorates because the user must physically carry the computing device
Solution Approach 1:
The patent introduces an account management system as an intermediary between the user and the payment network. This central system stores payment account information and provides it to point of sale terminals, eliminating the need for users to carry computing devices while maintaining security through centralized control and authentication mechanisms
Solution Approach 2:
The system creates a copy of the payment account information storage function from the user's computing device to the account management system. Instead of storing sensitive payment data locally on user devices, the system replicates the storage capability in a centralized secure environment that can serve multiple users and devices
2Ease of operation
If payment account information is centralized in an account management system, then user convenience improves, but system security requirements increase
Solution Approach 1:
The system performs preliminary authentication and verification actions before providing payment information. User identity is verified and payment account information is authenticated in advance by the account management system, ensuring that only authorized users can access their payment accounts while maintaining convenient access during transactions
Solution Approach 2:
The system implements feedback mechanisms where the account management system continuously verifies user identity and authorization status. Transaction requests trigger authentication feedback loops that confirm user legitimacy before releasing payment information, maintaining security through active verification rather than passive storage
3Productivity
If users must have their computing device present for digital wallet transactions, then payment security is maintained, but transaction speed deteriorates
Solution Approach 1:
The system performs preliminary actions by pre-authenticating users and having payment account information ready in the account management system before transactions occur. This eliminates the time-consuming steps of device presentation, wireless connection establishment, and real-time authentication, allowing for faster transaction processing
Data Source
AI summary
In an example embodiment, the user initiates a digital wallet transaction at a point of sale (“POS”) terminal of a merchant system. The POS terminal receives payment account information options associated with the user's digital wallet account from the account management system to display to the user. The user selects one or more payment account information options via a user interface of the POS terminal. The account management system receives an indication of the user's one or more selections, generates one or more payment tokens based on the corresponding selected payment account information options, and transmits the one or more payment tokens to the POS terminal for use in a transaction. The POS terminal communicates with one or more issuer systems associated with the selected payment account information options to process the transaction using corresponding payment tokens. The user receives a transaction receipt at the POS terminal.