Electronic Wallet Virtual Payment Device Rewards Redemption
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Electronic wallets do not efficiently enable users to redeem rewards earned using various payment devices across all merchants, as issuers are not integrated with all merchants, limiting reward redemption options.
Innovation Solution
A method, system, and computer program product that allows an electronic wallet application to store virtual payment devices, communicate rewards inquiries, and initiate transactions, enabling users to view and redeem rewards associated with each payment device by integrating with transaction service providers and issuers through specific application programming interfaces, allowing redemption regardless of the merchant.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If issuers integrate with individual merchants to enable rewards redemption, then rewards redemption is enabled at select merchants, but users cannot redeem rewards with all merchants
Solution Approach 1:
The patent introduces an electronic wallet application as an intermediary layer between the issuer system and merchant systems. The e-wallet stores virtual payment devices and communicates with both the issuer (to query and redeem rewards) and merchants (to process transactions). This intermediary structure allows the issuer to maintain a single integration point rather than requiring separate integrations with each merchant, thereby enabling universal reward redemption across all merchants while simplifying the overall system architecture.
2Ease of operation
If users carry multiple physical payment devices to initiate transactions, then transactions can be initiated with various merchants, but users cannot efficiently redeem rewards across all merchants
Solution Approach 1:
The patent creates virtual copies of physical payment devices and stores them in the electronic wallet application. These virtual payment devices replicate the functionality of physical cards while adding the capability to access and redeem rewards. Users can initiate transactions using these virtual copies just as they would with physical devices, but the system automatically enables reward redemption by communicating with the issuer through the e-wallet, thereby enhancing reward availability without compromising transaction convenience.
3Reliability
If issuers maintain separate integrations with each merchant, then rewards can be redeemed at integrated merchants, but the system complexity and integration requirements increase
Solution Approach 1:
The electronic wallet application serves multiple functions: it stores virtual payment devices, initiates transactions with merchants, queries rewards information from the issuer, and processes reward redemptions. By consolidating these functions in a single universal platform, the system eliminates the need for the issuer to maintain separate integration relationships with each merchant. The e-wallet acts as a universal interface that works with any merchant accepting the payment device, thereby maintaining reliable reward redemption functionality while dramatically simplifying the issuer's integration architecture.
Data Source
AI summary
A method for processing a transaction initiated using an electronic wallet application may include storing a virtual payment device configured to initiate a transaction. A rewards inquiry may be communicated to an issuer. A rewards inquiry response may be received from the issuer containing a rewards amount associated with the virtual payment device. The rewards amount may be displayed. A transaction may be initiated with a merchant using the virtual payment device. A redemption request may be communicated to the issuer. A redemption response including an updated rewards amount may be received from the issuer and include a difference between the rewards amount and the rewards amount applied toward the transaction. A system and computer program product are also disclosed.