Wireless Payment System Using Machine-Readable Code Authentication
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Solution Overview
Problem
The existing systems for wireless device-based payment transactions face challenges such as high costs for merchants to adopt new hardware, interoperability issues, and security concerns, along with user input complexity and the need for increased security to prevent information theft.
Innovation Solution
A method and system that uses a payment system to receive purchase information from a merchant, associate it with a transaction identifier, and transmit this identifier to a wireless device, allowing the device to capture a machine-readable code for authentication, minimizing user input and enabling secure transactions by using existing devices without the need for specialized hardware.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants adopt new hardware to support wireless device payment methods, then payment functionality is improved, but costs increase
Solution Approach 1:
The system enables existing merchant devices to perform multiple payment functions by software updates rather than hardware replacement. The payment system can operate on diverse device types (smartphones, tablets, laptops, traditional POS) through universal protocols, allowing one system to serve multiple payment needs without requiring specialized hardware at merchant locations.
Solution Approach 2:
Instead of requiring merchants to purchase expensive specialized hardware, the system uses software-based payment applications that can be copied and deployed on existing devices. The payment functionality is replicated through software updates rather than physical hardware deployment, significantly reducing adoption costs for merchants.
2Adaptability or versatility
If consumers purchase wireless devices with specialized hardware for new payment methods, then payment capability is improved, but device complexity increases
Solution Approach 1:
The system is designed to work with existing wireless devices that consumers already own, utilizing their available hardware capabilities. Instead of requiring specialized payment hardware, the system leverages standard device features (camera, processor, display, wireless communication) to enable payment functionality, avoiding additional device complexity.
Solution Approach 2:
The payment system acts as an intermediary layer between the consumer's existing device and the merchant's system. This intermediary software layer provides the necessary payment processing capabilities without modifying the consumer's hardware, allowing existing devices to perform payment functions through software mediation rather than specialized hardware integration.
3Reliability
If the system requires machine readable codes to be captured and interpreted, then payment security is improved, but user input complexity increases
Solution Approach 1:
The system automatically captures, interprets, and processes machine readable codes without requiring manual user intervention. The payment application on the consumer's device automatically scans for codes, extracts transaction information, and initiates the payment process, eliminating the need for users to manually input data while maintaining strong security through automated code validation and processing.
Data Source
AI summary
Embodiments of the invention provide methods and systems for performing a payment transaction. A method for performing a payment transaction may include receiving purchase information from a merchant and associating the purchase information with an identifier. The method may also include transmitting the identifier to the merchant and receiving the identifier from a wireless device of a customer. The wireless device may obtain the identifier by receiving a code from a merchant device and by interpreting the code. The method may additionally include associating the identifier with the purchasing information, determining a payment account associated with the customer, transmitting a request to a payment service provider system to provide funds for the payment transaction, and receiving an authorization from the payment service provider system to provide the funds. The method may additionally include transmitting a confirmation of the authorization to the merchant.