PayPal. has been granted a patent for a secure contactless payment system. The invention features an external card reader that converts electromagnetic signals from contactless cards into analog signals, which are then processed by a secure card reader terminal to facilitate financial transactions. GlobalData’s report on PayPal gives a 360-degree view of the company including its patenting strategy. Buy the report here.
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According to GlobalData’s company profile on PayPal, Social commerce was a key innovation area identified from patents. PayPal's grant share as of June 2024 was 56%. Grant share is based on the ratio of number of grants to total number of patents.
Secure contactless payment processing apparatus and methods
The patent US12045801B2 describes an innovative apparatus designed for processing contactless payment transactions. The apparatus comprises an external contactless card reader equipped with a first short-distance communication antenna that captures electromagnetic signals containing card data from a contactless payment card. This antenna converts the received signals into an analog format without digitizing them. The external card reader is connected to a card reader terminal via a feed line, which can be a twin-lead or coaxial cable, measuring between 30 cm and 200 cm in length. The card reader terminal features a secure area housing a short-distance receiver circuit that converts the analog signal into a digital signal for transaction processing, along with a secure controller that executes financial transactions based on the card data.
Additionally, the card reader terminal includes a second short-distance communication antenna, which may be a Near-Field Communication (NFC) antenna with a communication range of up to 10 cm. The design incorporates various antenna matching circuits to ensure optimal frequency characteristics between the antennas and the receiver circuit. The secure area within the card reader terminal is tamper-proof, featuring a tamper mesh with electrically conductive traces. The apparatus also includes a switch arrangement to select between the first and second antennas for signal connection. Overall, this patent outlines a secure and efficient method for handling contactless payment transactions while maintaining the integrity of the card data throughout the process.
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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
