Payment network using tradable financial assets

• US 10,621,561 B1
• Filed: 09/28/2018
• Issued: 04/14/2020
• Est. Priority Date: 07/26/2017
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Block, Inc. (f/k/a Square, Inc.)
• Inventors: Brock, Christopher Michael, Grassadonia, Brian, Moring, Michael
• Primary Examiner(s): Hamilton, Lalita M
• Application Number:
  US16/147,483
• Time in Patent Office: 564 Days
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography postage metering system using cryptography G06Q2250/05

Abstract

In one embodiment, a method includes receiving a request for payment associated with a transaction between a merchant and a customer, where a payment amount is specified in a fiat currency, determining a preference of the customer to pay for the transaction using a security asset, and verifying that a value of the security asset held by the payment system and assigned to the customer is sufficient to satisfy the payment amount. The method also includes initiating a transfer of at least a portion of the value of the security asset from a customer balance of the customer to a service balance of the payment service, initiating a transfer of a value in the fiat currency from the service balance of the payment service to a merchant balance of the merchant, and storing a record of the transaction between the customer and the merchant.

Claims

1. A method of settling a transaction between a customer and a merchant, comprising:

recording, in a ledger database of a payment service, a transfer of a quantity of security assets to the customer of the payment service, wherein the ledger comprises a customer balance associated with the customer and a service balance associated with the payment service, and wherein the customer balance and the service balance each includes a value of security asserts and a value of fiat currency;

receiving, by the payment service from a point-of-sale system associated with the merchant, a request for payment associated with the transaction, wherein a payment amount is specified in a fiat currency;

sending, to a computing device associated with the customer, information to display in a mobile wallet application the request for payment with different payment options, wherein the payment options include an option to pay using a security asset, wherein the security asset is held by the payment service and owned by the customer;

receiving, from the computing device associated with the customer, input selecting the option in the mobile wallet application to pay using the security asset;

verifying, by the payment service, that a value of the security asset held by the payment service and owned by the customer is sufficient to satisfy the payment amount, wherein the value is calculated based on a real-time price of the security asset;

initiating, by the payment service, a transfer of at least a portion of the value of the security asset from the customer balance to the service balance, wherein the ledger database is updated to record the transfer from the customer balance to the service balance;

initiating, by the payment service, a transfer of a value in the fiat currency from the service balance of the payment service to a merchant balance of the merchant, wherein the merchant balance is stored in the ledger database, and wherein the ledger database is updated to record the transfer from the service balance to the merchant balance;

determining, by the payment service, that the service balance is below a specified level;

in response to the determining, automatically initiating, by the payment service, a purchase of the security asset from a third-party securities exchange, wherein the purchase is sufficient to increase the service balance to equal or greater than the specified level; and

storing, by the payment service, a record of the transaction between the customer and the merchant.

2. The method of claim 1, wherein the security asset comprises:

stocks;

bonds;

stock options;

futures contracts;

or

a stake in a fund.

3. The method of claim 1, wherein the at least a portion of the value of the security asset from the customer balance comprises a fractional number of a base unit of the security asset.

4. The method of claim 1, further comprising:

receiving, by the payment service from the computing device associated with the customer, a purchase request to purchase a quantity of the security asset;

updating, by the payment service, the customer balance to increase the value of the security asset and to decrease the value of the fiat currency; and

updating, by the payment service, the service balance to decrease the value of the security asset and to increase the value of the fiat currency.

5. The method of claim 1, further comprising:

sending, to the computing device associated with the customer, information to display in the mobile wallet application a suggestion of a security pack to invest in, wherein the security pack comprises a plurality of different security assets, each corresponding to a weight;

receiving, from the computing device associated with the customer, a purchase request to purchase a quantity of the security pack;

updating the value of the fiat currency and a value of each of the plurality of security assets in the customer balance based on the amount of the security pack and the weight of each of the security assets; and

updating the value of the fiat currency and a value of each of the plurality of security assets in the service balance based on the amount of the security pack and the weight of each of the security assets.

6. The method of claim 1, wherein the request for payment comprises:

a customer identifier corresponding to the customer; and

a merchant identifier corresponding to the merchant.

7. The method of claim 1, further comprising:

sending, to the point-of-sale system associated with the merchant, a report associated with the record of the transaction, wherein the report specifies the amount paid as the value in the fiat currency without disclosing that the payment was made in the security asset.

8. The method of claim 1, further comprising:

determining, for each of a plurality of security assets, a value of the security asset in the service balance owned by the payment service;

calculating a risk index associated with each of the security assets based on the value of the security asset in the service balance; and

initiating one or more transactions each comprising buying at least one of the security assets from or selling at least one of the security assets to a third-party source of security assets.

9. A payment service system comprising one or more computer servers, each of the computer servers comprising one or more processors and a memory coupled to the processors comprising instructions executable by the processors, the processors being operable when executing the instructions to:

record, in a ledger database of the payment service, a transfer of a quantity of security assets to a customer of the payment service, wherein the ledger comprises a customer balance associated with the customer and a service balance associated with the payment service, and wherein the customer balance and the service balance each includes a value of security asserts and a value of fiat currency;

receive, by a payment service, a request for payment associated with a transaction between a merchant and the customer, wherein a payment amount is specified in a fiat currency;

identify, by the payment service and from an account associated with the customer, an indication that the customer intends to pay for the transaction using a security asset;

initiate, by the payment service, a transfer of at least a portion of a value of the security asset from the customer balance to the service balance, wherein the ledger database is updated to record the transfer from the customer balance to the service balance;

initiate, by the payment service, a transfer of a value corresponding to the payment amount in the fiat currency from the service balance of the payment service to a merchant balance of the merchant, wherein the merchant balance is stored in the ledger database, and wherein the ledger database is updated to record the transfer from the service balance to the merchant balance;

determining, by the payment service, that the service balance is below a specified level; and

in response to the determining, automatically initiating, by the payment service, a purchase of the security asset from a third-party securities exchange, wherein the purchase is sufficient to increase the service balance to equal or greater than the specified level.

10. The system of claim 9, wherein the instructions executable to identify an indication that the customer intends to pay for the transaction using a security asset comprise instructions executable to:

send, to a computing device associated with the customer, information to display in a mobile wallet application the request for payment with different payment options, wherein the payment options include an option to pay using a security asset; and

receive, from the computing device associated with the customer, input selecting the option in the mobile wallet application to pay using the security asset.

11. The system of claim 9, wherein the indication that the customer intends to pay for the transaction using a security asset is identified based on preference settings stored in a profile of the customer.

12. The system of claim 9, wherein the security asset comprises:

stocks;

bonds;

stock options;

futures contracts;

or

a stake in a fund.

13. The system of claim 9, wherein the at least a portion of the value of the security asset from the customer balance comprises a fractional number of a base unit of the security asset.

14. The system of claim 9, wherein the processors are further operable when executing the instructions to:

receive, from a computing device associated with the customer, a purchase request to purchase a quantity of the security asset;

update the customer balance to increase a value of the security asset and to decrease a value of the fiat currency; and

update the service balance to decrease a value of the security asset and to increase a value of the fiat currency.

15. The system of claim 9, wherein the processors are further operable when executing the instructions to:

send, to a computing device associated with the customer, information to display in a mobile wallet application a suggestion of a security pack to invest in, wherein the security pack comprises a plurality of different security assets, each corresponding to a weight;

receive, from the computing device associated with the customer, a purchase request to purchase a quantity of the security pack;

update a value of the fiat currency and a value of each of the plurality of security assets in the customer balance based on the amount of the security pack and the weight of each of the security assets; and

update a value of the fiat currency and a value of each of the plurality of security assets in the service balance based on the amount of the security pack and the weight of each of the security assets.

16. The system of claim 9, wherein the request for payment comprises:

a customer identifier corresponding to the customer; and

a merchant identifier corresponding to the merchant.

17. The system of claim 9, wherein the processors are further operable when executing the instructions to:

send, to the point-of-sale system associated with the merchant, a report associated with the record of the transaction, wherein the report specifies the amount paid as the value in the fiat currency without disclosing that the payment was made in the security asset.

18. The system of claim 9, wherein the processors are further operable when executing the instructions to:

determine, for each of a plurality of security assets, a value of the security asset in the service balance owned by the payment service;

calculate a risk index associated with each of the security assets based on the value of the security asset in the service balance; and

initiate one or more transactions each comprising buying at least one of the security assets from or selling at least one of the security assets to a third-party source of security assets.

19. One or more computer-readable non-transitory storage media embodying software that is operable when executed to:

record, in a ledger database of a payment service, a transfer of a quantity of security assets to a customer of the payment service, wherein the ledger comprises a customer balance associated with the customer and a service balance associated with the payment service, and wherein the customer balance and the service balance each includes a value of security asserts and a value of fiat currency;

receive, by a payment service, a request for payment associated with a transaction between a merchant and the customer, wherein a payment amount is specified in a fiat currency;

identify, by the payment service and from an account associated with the customer, an indication that the customer to intends to pay for the transaction using a security asset;

initiate, by the payment service, a transfer of at least a portion of a value of the security asset from the customer balance to the service balance, wherein the ledger database is updated to record the transfer from the customer balance to the service balance;

initiate, by the payment service, a transfer of a value corresponding to the payment amount in the fiat currency from the service balance of the payment service to a merchant balance of the merchant, wherein the merchant balance is stored in the ledger database, and wherein the ledger database is updated to record the transfer from the service balance to the merchant balance;

determining, by the payment service, that the service balance is below a specified level; and

in response to the determining, automatically initiating, by the payment service, a purchase of the security asset from a third-party securities exchange, wherein the purchase is sufficient to increase the service balance to equal or greater than the specified level.

20. The media of claim 19, wherein the software operable when executed to determine a preference of the customer to pay for the transaction using a security asset comprise software operable when executed to:

send, to a computing device associated with the customer, information to display in a mobile wallet application the request for payment with different payment options, wherein the payment options include an option to pay using a security asset; and

receive, from the computing device associated with the customer, input selecting the option in the mobile wallet application to pay using the security asset.