WO2022115034A1

WO2022115034A1 - A system and method for processing purchase transactions

Info

Publication number: WO2022115034A1
Application number: PCT/SG2021/050716
Authority: WO
Inventors: Ericson D-Minh THAM
Original assignee: Tham Ericson D Minh
Priority date: 2020-11-25
Filing date: 2021-11-21
Publication date: 2022-06-02

Abstract

According to various embodiments, a system and method for processing purchase transactions is provided. The method is performed by a transaction processing system in communication with a marketplace system associated with the remote point of sale, and comprises receiving input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm, wherein the input data comprises a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system.

Description

A SYSTEM AND METHOD FOR PROCESSING PURCHASE TRANSACTIONS

Technical Field

[0001] The present disclosure generally relates to a system and method for processing purchase transactions.

Background

[0002] The following discussion of the background to the invention is intended to facilitate an understanding of the present invention. However, it should be appreciated that the discussion is not an acknowledgment or admission that any of the material referred to was published, known or part of the common general knowledge in any jurisdiction as at the priority date of the application.

[0003] Physical and online retailers are always seeking to have more sales, even if they have to give deep discounts to keep their stocks moving. This problem is particularly more pronounced with retailers who are in the business of selling products with a limited shelf-life. While physical and online retailers are willing to give deep discounts to encourage sales, they are not given the “equity” in return for the “risk” of offering a deep discount. “Equity” in this sense, would be the assured sale to justify the deep discount given.

[0004] To improve on sales of their goods, physical and online retailers have in recent years implemented the concept of cashback. However, the current cashback models lack luster as the value of cashbacks are often small or capped at a fixed amount. This results in a less than exciting experience for the customer. [0005] Additional benefits and advantages of the disclosed embodiments will become apparent from the specification and drawings. The benefits and/or advantages may be individually obtained by the various embodiments and features of the specification and drawings, which need not all be provided in order to obtain one or more of such benefits and/or advantages.

Summary

[0006] Disclosed are arrangements which seek to address one or more of the above problems by providing a system and method to monitor trip and detect unsafe events. The disclosed arrangements can also be used to monitor a trip based on processing data relating to each element of the trip and trigger an appropriate response upon detection of an unsafe of unusual event.

[0007] According to a first aspect, the present disclosure refers to method for processing purchase transactions of users at a remote point of sale. The method is performed by a transaction processing system in communication with a marketplace system associated with the remote point of sale. The method comprises receiving input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm, the input data comprising a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system. The method further includes determining for a first set of purchase transactions by a first group of users for a product, by the tracking algorithm, if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone. The method further includes determining for a second set of purchase transactions by a second group of users, by the tracking algorithm, if a second discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the intermediate transaction milestone. The method further includes determining for a third set of purchase transactions by a third group of users, by the tracking algorithm, if a third discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the final transaction milestone. The method includes applying the first discount, the second discount and the final discount to the product in response to the determinations, and determining, by the tracking algorithm, a first reward amount due to each of the first group of users, a second reward amount due to each of the second group of users, and a third reward amount due to each of the third group of users based on an allocation of an accrued discount of the purchase transactions at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectivel. The method transmits the first reward amount, the second reward amount, and the third reward amount due to each of the respective groups of users.

[0008] According to a second aspect, the present disclosure refers to a system for processing purchase transactions of users at a remote point of sale performed by a transaction processing system in communication with a marketplace system associated with the remote point of sale, the system comprising at least one processor and at least one memory including computer program code, the at least one memory and the computer program code configured to, with at least one processor, cause the server at least to receive input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm, the input data comprising a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system. It also causes the server to determine for a first set of purchase transactions by a first group of users for a product, by the tracking algorithm, if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone, determine for a second set of purchase transactions by a second group of users, by the tracking algorithm, if a second discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the intermediate transaction milestone, determine for a third set of purchase transactions by a third group of users, by the tracking algorithm, if a third discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the final transaction milestone, apply the first discount, the second discount and the final discount to the product in response to the determinations, determine, by the tracking algorithm, a first reward amount due to each of the first group of users, a second reward amount due to each of the second group of users, and a third reward amount due to each of the third group of users based on an allocation of the accrued discount of the purchase transactions at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively and to transmit the first reward amount, the second reward amount, and the third reward amount due to each of the respective groups of users.

Brief Description of the Drawings

[0009] In the drawings, like reference characters generally refer to the same parts throughout the different views. The drawings are not necessarily to scale, emphasis instead generally being placed upon illustrating the principles of the invention. The dimensions of the various features or elements may be arbitrarily expanded or reduced for clarity. In the following description, various embodiments of the invention are described with reference to the following drawings, in which:

[0010] Figure 1 is a block diagram illustrating a system for processing purchase transactions of users in accordance with embodiments of the present disclosure; [0011] Figure 2 is a block diagram of an exemplary computing system in accordance with the disclosed embodiments;

[0012] Figure 3 is a flowchart of an exemplary process for processing purchase transactions in accordance with the disclosed embodiments;

[0013] Figure 4 is a flowchart of an exemplary process for processing purchase transactions in accordance with the disclosed embodiments;

[0014] Figures 5a and 5b illustrate an assymetric transaction milestone model in accordance with the disclosed embodiments;

[0015] Figures 6a and 6b illustrate a symmetric transaction milestone model in accordance with the disclosed embodiments;

[0016] Figure 7 illustrates a flow chart of an exemplary process for processing purchasing transactions of users in accordance with various embodiments of the present invention; and

[0017] Figure 8 illustrates a block diagram of a system for processing purchasing transactions of users in accordance with various embodiments of the present invention.

Detailed Description

[0018] The following detailed description refers to the accompanying drawings that show, by way of illustration, specific details and embodiments in which the invention may be practiced. These embodiments are described in sufficient detail to enable those skilled in the art to practice the invention. Other embodiments may be utilized and structural, and logical changes may be made without departing from the scope of the invention. The various embodiments are not necessarily mutually exclusive, as some embodiments can be combined with one or more other embodiments to form new embodiments.

[0019] In order that the invention may be readily understood and put into practical effect, particular embodiments will now be described by way of examples and not limitations, and with reference to the figures. It will be understood that any property described herein for a specific product may also hold for any product described herein. It will be understood that any property described herein for a specific method may also hold for any method described herein. Furthermore, it will be understood that for any device or article or method described herein, not necessarily all the components or steps described must be enclosed in the product or device or method, but only some (but not all) components or steps may be enclosed.

[0020] In the specification the term “comprising” shall be understood to have a broad meaning similar to the term “including” and will be understood to imply the inclusion of a stated integer or step or group of integers or steps but not the exclusion of any other integer or step or group of integers or steps. This definition also applies to variations on the term “comprising” such as “comprise” and “comprises”.

[0021] In the specification, the following terms are defined accordingly:

[0022] Payment account - a payment account is a financial or transaction account that is used to fund and perform a transaction, such as a checking account, savings account, credit account, virtual payment account, etc. A financial or transaction account may be associated with a consumer, which may be any suitable type of entity such as a person, a family, a company, a corporation, a governmental entity, etc. A payment account may also be associated with a payment card, such as credit card, debit card, prepaid card, charge card, membership card, royalty card, promotional card, frequent flyer card, identification card, gift card, and/or may also relate to a digital wallet (which is also known as an e-wallet). A digital wallet is typically used to store various forms of electronic money to aid in completing e-commerce transactions (or wallet-based transactions). For example, it is possible to link / register one or more payment account/card to a digital wallet to perform a wallet-based transaction. It will be understood that each type of these payment account can be used as a method of payment for the online payment system described herein. The payment account includes account information such as an account number, account owner, and the like.

[0023] Payment transaction - a payment transaction between two entities in which money or other financial benefit is exchanged from one entity to the other. The payment transaction may be a transfer of funds via a payment card and/or payment account, for the purchase of goods or services, for the repayment of debt, or for any other exchange of financial benefit as will be apparent to persons having skill in the relevant art. Such payment transactions may be processed via an issuer, payment network, and acquirer. Typically, the process for processing such a payment transaction may include at least one of authorization, batching, clearing, settlement, and funding. Authorization may include furnishing of payment details by the consumer to a merchant, the submitting of transaction details (e.g., including the payment details) from the merchant to their acquirer, and the verification of payment details with the issuer of the consumer’s payment account used to fund the transaction. Batching may refer to the storing of an authorized transaction in a batch with other authorized transactions for distribution to an acquirer. Clearing may include the sending of batched transactions from the acquirer to a payment network for processing. Settlement may include the debiting of the issuer by the payment network for transactions involving beneficiaries of the issuer. In some instances, the issuer may pay the acquirer via the payment network. In other instances, the issuer may pay the acquirer directly. Funding may include payment to the merchant from the acquirer for the payment transactions that have been cleared and settled. It will be apparent to persons having skill in the relevant art that the order and/or categorization of the steps discussed above performed as part of payment transaction processing.

[0024] User - a user may be any suitable type of entity, which may include a person, consumer, passenger, family, company, corporation, governmental entity who register a user account under a biometric based payment server/system (hereinafter may refer to as a remote assistance server) for identifying a payment account to process a financial transaction. Such registration step is called on-boarding. A user account identifier will be assigned to each user account (i.e., the user). In one embodiment, the remote assistance server may be connected to a payment network server, and a user account is thus associated with one or more payment accounts of the user, each of which can be used to process a financial transaction, i.e., transfer and receive money or other financial benefit. In various embodiments, unless otherwise is specified, a user refers to a person (i.e., payer) whose data and information associated his/her user account will be utilized to make a payment to goods and/or service providers such as a merchant in a merchant store, a driver in a car (i.e., payee). Additionally, a payee could also register himself/herself a user account for receiving the payment from the payer.

[0025] Payer device - a payer device typically is associated with a customer (or payer) who is a party to a transaction. The payer device may be a handheld or portable or mobile device or other types of electronic devices such as a personal computer, a land line telephone or an interactive voice response (IVR) system and the like carried by the customer when a financial transaction is initiated. The mobile device may be a device, such as a mobile phone, a laptop computer, a personal digital computer (PDA), a mobile computer, a portable music player (such as an iPod™ and the like). [0026] Marketplace system - a marketplace system may be an electronic online platform that is associated with one or more merchants or other business entities that provides goods and/or services, such as a retailer, grocery store, service provider, or any other type of entity that provides goods and/or services that consumers may purchase. Some examples of marketplace systems include e-commerce platforms, online aggregators, any online platform that provides goods or services for sale or incentives.

[0027] Merchant device - a merchant device typically is associated with a good and/or service provider who is also a party to the transaction. The merchant device may be a point-of-sale (POS) terminal, an automatic teller machine (ATM), a personal computer, a computer server (hosting a website, for example), an IVR system, a land-line telephone, or any type of mobile device such as a mobile phone, a personal digital assistant (PDA), a laptop computer, a tablet computer and the like.

[0028] It is to be appreciated the embodiments of this invention as discussed below are preferably a software algorithm, program or code residing on computer useable medium having control logic for enabling execution on a machine having a computer processor. The machine typically includes memory storage configured to provide output from execution of the computer algorithm or program.

[0029] As used herein, the term “software” is meant to be synonymous with any code or program that can be in a processor of a host computer, regardless of whether the implementation is in hardware, firmware or as a software computer product available on a disc, a memory storage device, or for download from a remote machine. The embodiments described herein include such software to implement the equations, relationships and algorithms described. One skilled in the art will appreciate further features and advantages of the invention based on the above-described embodiments. [0030] To achieve the stated features, advantages and objects, the present invention is directed to a system and method for processing purchase transactions of users at a remote point of sale by a reward processing sytem that is in communication with a marketplace system as described herein. In general, the present invention provides a system and method for progressively releasing more discounts in the form of rewards, and retrospectively distributing these rewards to users as milestone targets are achieved. This addresses some of the problems inherent in current cashback models or reward models that are inherent on e-commerce platforms, physical retailers or campaigns and initiatives. The present invention for use on an e-commerce platform, physical retailer or general campaigns and initiatives is based on a retrospective variable distribution model that allows the progressive issuance and retrospective distribution of accrued variables (ie. time, discounts, reward points, etc.) as target milestones in an ongoing timeline are achieved. For example, online retailers can now safely set a deep discount on a product or a group of products and be assured that they will not have to honor the deep discount, unless their target sales quantity is achieved. When shoppers purchase from an online retailer that makes use of the present disclosure, they can now get to enjoy recurring cashbacks each time the online retailer hits a sales milestone. Tapping into the collective effect of ‘Crowd Shopping’, termed as the collective effort of shoppers, actively and passively reducing the price of a product brought about by their purchase that is offered through the use of the system, future online shoppers can now enjoy increasingly lower prices as prior online shoppers make their purchase.

[0031] Some portions of the description which follows are explicitly or implicitly presented in terms of algorithms and functional or symbolic representations of operations on data within a computer memory. These algorithmic descriptions and functional or symbolic representations are the means used by those skilled in the data processing arts to convey most effectively the substance of their work to others skilled in the art. An algorithm is here, and generally, conceived to be a self-consistent sequence of steps leading to a desired result. The steps are those requiring physical manipulations of physical quantities, such as electrical, magnetic or optical signals capable of being stored, transferred, combined, compared, and otherwise manipulated.

[0032] Unless specifically stated otherwise, and as apparent from the following, it will be appreciated that throughout the present specification, discussions utilizing terms such as “receiving”, “calculating”, “determining”, “updating”, “generating”, “initializing”, “outputting”, “receiving”, “retrieving”, “identifying”, “dispersing”, “authenticating” or the like, refer to the action and processes of a computer system, or similar electronic device, that manipulates and transforms data represented as physical quantities within the computer system into other data similarly represented as physical quantities within the computer system or other information storage, transmission or display devices.

[0033] It is to be appreciated that those skilled in the art will readily recognize, in accordance with the teachings of the present invention, that while any of the steps of the method and/or system may be implemented on e-commerce platforms or online retailers, it is envisaged that the steps of the method and/or system may be implemented in other applications, for example, for any campaign or initiatives involving any form of rewards, depending upon the needs of the particular application.

[0034] Figure 1 shows a block diagram illustrating a system for processing a purchase transaction of users at a remote point of sale according to an embodiment of the present disclosure. The system 100 comprises payer devices 140, 150, 160,170 used by consumers (users) who are registered with a marketplace system 110. Examples of the payer devices 140-170 are tablets, laptops, desktop computers, smartphones, and the like. The payer device 140 connects to the marketplace system 110 via connections 190. The payer device 130 can communicate with the marketplace system 110 and provide commands to the marketplace system 110 in the form of voice, text, and the like. The merchant device 120 connects to the marketplace system 110 and the transaction processing system 130 via connections 190. The connections 190 may be wired, wireless (e.g., via NFC communication, Bluetooth, etc.) or over a network (e.g., the Internet). Each payer device 140-170 represents a purchaser of products or services on the marketplace system, and each purchase by each payer device is defined by a single transaction based on a payment amount that is processed by the transaction processing system 130.

[0035] The marketplace system 110 may be a computing system that is associated with one or more merchants or other business entities that provides goods and/or services, such as a retailer, grocery store, service provider, or any other type of entity that provides goods and/or services that consumers (eg. charity, government entities) may purchase. While the system 100 is shown with only one marketplace system 110, the disclosed embodiments may be implemented in a system including two or more online marketplace systems associated with a number of underlying business entities. Alternatively, the marketplace system 110 may be implemented in a system that includes multiple merchants and business entities, each providing goods and/or services in many industries or fields. Further, the marketplace system 110 is not limited to conducting businesses in any particular industry or field.

[0036] A merchant device 120 is in communication with the marketplace system 110 via a communications network (not shown). The merchant device 120 may be associated with a merchant or business entity that provides goods and/or services on the marketplace system 110. The merchant may be associated with a physical brick and mortar location or via known online or e-commerce types of solutions. For example, a merchant may sell goods via a website using a known marketplace systems 110 to market, sell, and process online transactions. [0037] Examples of merchant devices 120 are tablets, laptops, desktop computers, smartphones, and the like. The merchant device 120 connects to the marketplace system 110 via connections. The connections may be wired, wireless (e.g., via NFC communication, Bluetooth, etc.) or over a network (e.g., the Internet). The merchant device 120 can communicate with the marketplace system 110 and provide commands to the marketplace system 110 in the form of voice, text, and the like.

[0038] A transaction processing system 120 is in communication with the marketplace system. In various embodiments, the transaction processing system may be operated by an entity (eg. a company or an organization) different from the marketplace system 110. The transaction processing system 120 may include one or more servers or other type of computer devices. The transaction processing system server may be one or more computing devices configured to execute software instructions stored in memory to perform one or more processes consistent with the disclosed embodiments. For example, the transaction processing system 120 may include one or more memory devices storing data and software instructions and one or more processors configured to use the data and execute the software instructions to perform server-based functions and operations known to those skilled in the art. In various embodiments, the transaction processing system processes purchase transactions associated with payer devices for the purposes of determining discount and reward amount eligibility and for tracking purchase transactions of products associated with merchants, details of which will be explained hereinafter.

[0039] Use of the term ‘server’ herein can mean a single computing device or a plurality of interconnected computing devices which operate together to perform a particular function. That is, the server may be contained within a single hardware unit or be distributed among several or many different hardware units. [0040] The transaction processing system 120 is a server that hosts software application programs to process purchase transactions received from the marketplace system 110 or the payer device 140. In various embodiments, the transaction processing system 120 provides an interface to enable communication with each of the payer devices 140 150, 160, the marketplace system 110 and the merchant device 120. The transaction processing system 120 provides an application programming interface (“API”) to facilitate such communication. Such APIs may be part of a user interface that may include graphical user interfaces (GUIs), Web-based interfaces, programmatic interfaces such as application programming interfaces (APIs) and/or sets of remote procedure calls (RPCs) corresponding to interface elements, messaging interfaces in which the interface elements correspond to messages of a communication protocol, and/or suitable combinations thereof. Examples of APIs include the REST API, and the like. In various embodiments, the transaction processing system 120 can be implemented as a technology layer. In various embodiments, the transaction processing system 12- can be deployed in- house in a proprietary setting where the retailer uses it exclusively for itself to sell to its customers online or in-store. In some embodiments, e-commerce platform providers can integrate the transaction processing system 120 into the website’s inventory listing interface. When online retailers are uploading and setting their price points for their products, they can utilize the system to create deep discount campaigns. In some embodiments, as a plug-in, the transaction processing system 120 can be synchronized to work with e-commerce platforms such as Shopify and WooCommerce, or with website builders which offers the use of plug-ins to deliver certain functions. In this case as an example, using Wix or WordPress to build an e-commerce website.

[0041] The transaction processing system 120 is configured to receive and send commands and data from and to the payer devices, from and to the merchant devices 120 and from and to the marketplace system 110. Examples of data transmitted include [0042] According to the present disclosure, a user may register himself/herself and create a user account on the marketplace system 110. The marketplace system 110 is in communication with a database. The database stores data relating to registered users and includes username, user address, user account identifier, password, given name, identity card number, account numbers, contact number, facial images, biometric data, application settings. Optionally, the user may configure to have a list of user’s preferred merchants/types of business, or a list of merchants or type of business authorized to access his/her data to perform facial lookup and payment transactions. Additionally, the database may store transaction data of transactions completed through the remote assistance server. Such data stored in the database may be accessible by respective users through their devices, e.g., payer device 102.

[0043] Figure 2 shows a diagram of an exemplary computing system 200 illustrating a computing system configuration that may be associated with a payer device, a merchant device, a marketplace system and the transaction processing system, consistent with the disclosed embodiments. In some embodiments, the computing system 200 may include one or more processors 220, one or more memories 210, and one or more input/output (I/O) devices 230. In some embodiments, computing system 200 may take the form of a server, general purpose computer, a mainframe computer, a laptop, smartphone, mobile device, or any combination of these components. In certain embodiments, computing system 200 may be configured as a particular apparatus, system and the like based on the storage, execution, and/or implementation of the software instructions that enable performance of one or more operations consistent with the disclosed embodiments. Computing system 200 may be standalone, or it may be a part of a subsystem, which may be part of a larger system. [0044] The processor 220 may include a microprocessor, an analogue circuit, a digital circuit, a mixed-signal circuit, a logic circuit, an integrated circuit, a Central Processing Unit (CPU), a Graphics Processing Unit (GPU), a Digital Signal Processor (DSP), a Field Programmable Gate Array (FPGA), an Application Specific Integrated Circuit (ASIC), etc., or any combination thereof. Any other kind of implementation of the respective functions, which will be described below in further detail, may also be understood as the processor 220.

[0045] In some embodiments, the computing system 200 may further include a memory 230. The memory may be used by the processor 220 to permanently or temporarily store, for example, data to be processed to detect the information about transaction data 212. The memory 230 may include one or more storage devices configured to store instructions used by processor to perform functions related to the disclosed embodiments. The memory may include, but not be limited to, a cloud memory, a server memory, and a physical storage, for example a RAM (random-access memory), an HDD (hard disk drive), an SSD (solid-state drive), others, or any combinations thereof.

[0046] Programs executed by processor 220 may cause processor 220 to execute one or more processes related to purchase transactions or payment transactions provided to users, including, but not limited to, processing credit and debit card transacctions, transferring money between payment accounts, processing purchase transactions for credit card or debit card transactions, providing loyalty or reward programs, including providing a discount on a sale transaction.

[0047] Memory 230 may include transaction data 212 which may include information related to purchase transactions by a user of a payer device. For example, transaction data 212 may include a user identifier and a purchase price. The user identifier may be a credit or debit card number, and account number, or another means for identifying the user initiating the purchase transaction. The purchase price may include a number representing the total sale price of the purchase transaction and/or may include a list of various items purchased from the marketplace system. In some embodiments, the marketplace system, transaction processing system or the merchant device may collect, generate and provide transaction data relating to purchase transactions involving a user. Transaction data may be stored in a database 230 or in an external storage in communication with the computing system via network or any other suitable network.

[0048] Memory may further include user data 214. User data may include information about particular users of the marketplace system. For example, user data may include usres’ account information, debit or credit card information, history of purchase trnsactions, credit score, risk profile, accumulated reward points or reward amounts, and discount eligibility related to various users. When a user initiates a purchase transaction, processor may analyze user data or usre profiles before authorizing the purchase transaction on behalf of the user. Alternatively, user data may be stored in a database or in an external storage in communication with computing system via network or any other suitable network.

[0049] I/O devices 230 may be one or more devices that are configured to allow data to be received and/or transmitted by computing system 200. I/O devices may include one or more digital and/or analog communication devices that allow computing system 200 to communicate with other machines and devices, such as other components of system 100 shown in Figure 1. For example, computing system 200 may include interface components, which may provide interfaces to one or more input devices, such as one or more keyboards, mouse devices, and the like, which may enable computing system 200 to receive input from an operator of the device. [0050] The computing system may also contain one or more databases 230. Alternatively, computing system 200 may be communicatively connected to database 230 through a network. Database 230 may include one or more memory devices that store information and are accessed and/or managed through computing system 200. Database may include computing components (eg. database management system, database server, etc.) configured to receive and process requests for data stored in memory devices of databases and to provide data from database.

[0051] Figure 3 provides a flow chart illustrating a method 300 for processing purchase transactions of users at a remote point of sale according to another embodiment of the present disclosure. The exemplary process may be performed by processor 220 of the transaction processing system 130 executing instructions encoded on a computer- readable medium storage device. It is to be understood that that one or more steps of the process may be implemented by other components of the system including the payer device and/or the merchant device.

[0052] At step 310, the transaction processing system 130 may receive input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm. The input data coomprises a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system. A person skilled in the art would understand that an intermediate transaction milestone can refer to a second or third transaction milestone as determined by the tracking algorithm depending on the input data received by the merchant device. The tracking algorithm computes the first transaction milestone, the intermediate transaction milestone, and the final transaction milestone based on the minimum discount, the maximum discount and the final cumulative transaction amount or the total revenue sales of the product desired by the merchant. [0053] The maximum discount is the maximum discount in percentage value or total discount in dollar value based on the final cumulative transaction amount of the product or the total revenue sales of the product desired by the merchant. For example, if the merchant determines the maximum discount to be 50% to be applied on the product, the maximum discount is also equivalent to $500 if the total revenue sales of the product desired is $1,000.

[0054] At step 320, the transaction processing system determines for a first set of purchase transactions by a first group of users for the product if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone. The transaction processing system may use the purchase transaction to determine the discount eligibility by comparing the current cumulative transaction amount of the product with a first transaction milestone of the product. In various embodiments, the current cumulative transaction amount is the current cumulative transaction amount of the product or the total transacted value of the product on the marketplace system. In some embodiments, the current cumulative transaction amount is the current cumulative quantity of products transacted or the total quantity of products transacted on the marketplace system. In various embodiments, the first transaction milestone is determined by the tracking algorithm based on the minimum discount, maximum discount and the final cumulative transaction amount configured by the merchant. The first transaction milestone is therefore associated with a predetermined purchase transaction value of the product or the predetermined quantity of products sold on the marketplace system, depending on whether merchant desires the final cumulative transaction amount to be based on purchase transaction value or quantity of products sold on the marketplace system. [0055] In some embodiments, the first discount is the minimum discount as determined by the merchant device. In some embodiments, the merchant may apply the same discount amount to all purchases made by the user and subsequent purchasers of the product, as long as the current cumulative transaction amount of the product is less than the first transaction milestone of the product. If the current cumulative transaction amount of the product is more than or equal to the first transaction milestone of the product, the tracking algorithm will provide a second discount and a second reward amount based on the determined first transaction milestone of the product.

[0056] At step 330, the transaction processing system determines for a second set of purchase transactions by a second group of users for the product if a second discount is applicable on the product by comparing a current cumulative transaction amount of the product with the intemediate transaction milestone. In some embodiments, the intermediate transaction milestone includes more than one transaction milestone and depends on the configuration determined by the transaction processing system. The transaction processing system may use the purchase transaction to determine the discount eligibility by comparing the current cumulative transaction amount of the product with the intermediate transaction milestone of the product. In various embodiments, the inetermediate transaction milestone is determined by the tracking algorithm based on the minimum discount, maximum discount and the final cumulative transaction amount configured by the merchant. The intermediate transaction milestone is therefore associated with a predetermined purchase transaction value of the product or the predetermined quantity of products sold on the marketplace system, depending on whether merchant desires the final cumulative transaction amount to be based on purchase transaction value or quantity of products sold on the marketplace system.

[0057] At step 340, the transaction processing system determines for a third set of purchase transactions by a third group of users for the product if a final discount is applicable on the product by comparing a current cumulative transaction amount of the product with the final transaction milestone. The transaction processing system may use the purchase transaction to determine the discount eligibility by comparing the current cumulative transaction amount of the product with the final transaction milestone of the product. In various embodiments, the final transaction milestone is determined by the tracking algorithm based on the minimum discount, maximum discount and the final cumulative transaction amount configured by the merchant. The final transaction milestone is therefore associated with a predetermined purchase transaction value of the product or the predetermined quantity of products sold on the marketplace system, depending on whether merchant desires the final cumulative transaction amount to be based on purchase transaction value or quantity of products sold on the marketplace system.

[0058] At step 350, the transaction processing system applies the first discount, the second discount and the final discount to the product in response to the determinations at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone. If the current cumulative transaction amount of the product is less than the first transaction milestone of the product, the tracking algorithm will apply a first discount on the product in respect of that purchase transaction provided to each of the first group of users. Similarly, if the current cumulative transaction amount of the product is less than the intermediate transaction milestone of the product, the tracking algorithm will apply a second discount on the product in respect of that purchase transaction provided to each of the second group of users. Similarly, if the current cumulative transaction amount of the product is less than the final transaction milestone of the product, the tracking algorithm will apply a final discount on the product in respect of that purchase transaction provided to each of the final group of users. [0059] Subsequently, the transaction processing system transmits the payment amount, with the first discount, second discount, or the final discount applied on the original purchase amount of the product to the payer device for display to the user. In some embodiments, the first discount which may be in the form of a percentage of the sale price or a discounted dollar amount based on the original purchase amount, may be displayed to the user through an interface on the payer device implemeting a program provided by the marketplace system. In some embodiments, the discount may be displayed via an ‘in-app’ message or alert notification. The payer device may also implement a web browser that allows the payer device to connect with the marketplace system.

[0060] Once each of the respective groups of users has remitted the payment amount, the transaction processing system may receive a payment transaction data from the marketplace system or a payment network server associated with an acquirer server or an issuer server communicative with the marketplace system once the user of the payer device decides to proceed with the purchase of the product or service. The transaction processing system may proceed to identify each of the users based on user information associated with a user registered on the marketplace system.

[0061] The marketplace system transmits authorization for the purchase transaction to the payment network server. In some embodiments, the marketplace system may authorize the payment transaction, and the user’s account may be charged or debited for the payment transaction. The user may initiate payment transaction through the marketplace system with the payer device. In some embodiments, the user may initiate payment transaction by initiating payment by credit card or debit card. This may be done, for example, by authorizing an online sale via the credit card or debit card, or by swiping a credit or debit card at a point of sale terminal. The payment transaction data includes at least the user identifier, a payment transaction identifier, a payment transaction timestamp, a payment transaction amount that includes the original purchase amount, a first discount associated with the discount eligibility, and a first reward associated with the reward eligibility, if eligible. For example, the user identifier may be the credit card or debit card number associated with the card the which the user initiated the purchase transaction. The user identifier, however, may include any other means for identifying the user known in the art, such as, the user details provided by the user for registration on a marketplace system.

[0062] At step 360, the transaction processing system determines, by the tracking algorithm, a first reward amount due to each of the first group of users, a second reward amount due to each of the second group of users, and a third reward amount due to each of the third group of users based on an allocation of an accrued discount of the purchase transactions at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively. At each transaction milestone, the tracking algorithm computes the accrued discount which is explained in the following paragraphs. In some embodiments, the reward amount is determined based on the allocation of the accrued discount to each of the purchasers within the transaction milestone or previous transaction milestones, if any. In some embodiments, the reward amount is a cashback in the form of a cash credit that is credited to a user account, e-wallet or credit card account.

[0063] The tracking algorithm computes the first transaction milestone (for example, Tier 1), intermediate transaction milestone (for example, Tier 2) and final transaction milestone (for example, Tier 3) based on the input data received from the merchant device as explained previously. The tracking algorithm also receives an input discount from the transaction processing system for computing an allocated discount and discounts (i.e. first discount, second discount, third discount, and final discount, etc.) to be applied on each product within each transaction milestone. In some embodiments, the input discount is the discount release predetermined by the transaction processing system for each transaction milestone. For example, the transaction processing system may determine that the input discount at the first transaction milestone is set at 40% (not shown), the intermediate transaction milestone is set at 60% (not shown), and the final transaction milestone is set at 100% (not shown).

[0064] Based on the input discount received from the transaction processing system, the tracking algorithm also computes an allocated discount and discount to be applied on the products at each transaction milestone. In some embodiments, the allocated discount for each transaction milestone is determined based on the product of the input discount and the maximum discount. For example, within the first transaction milestone, if the input discount is 40% and the maximum discount is 50%, the allocated discount for the first transaction milestone is 20% (40% X 50% = 20%). In some embodiments, the allocated discount for the first transaction milestone can be defined as the first allocated discount, and the allocated discount for the intermediate transaction milestone can be defined as the second allocated discount or intermediate allocated discount, and the allocated discount at the final transaction milestone can be defined as the final allocated discount. The first discount is the discount to be applied to the product or service at the first transaction milestone. In some embodiments, the first discount is determined based on the minimum discount configured by the merchant to be applied on the product or service for purchases within the first transaction milestone. For example, if a user purchases a product within the first transaction milestone, the transaction processing system will apply a first discount of 10% if the minimum discount desired by the merchant is 10%. In Figure 5b, the first discount is determined at 15% if the minimum discount input by the merchant is 15%.

[0065] The accrued discount is determined based on the difference between an allocated discount and the discount for the respective transaction milestone. For example, for purchases within the first transaction milestone, if the allocated discount and the first discount is 20% and 10% respectively, the accrued discount is 10% (20% - 10% = 10%) of the total original purchase value of the products. If the total products sold within the first transaction milestone is two, the total original purchase value of the products is $200, and the accrued discount for the two products will be $20. The reward amount for each purchaser is the accrued discount split equally between the purchasers within the first transaction milestone, and each purchaser will be awarded a reward amount of $10. The reward amount can be defined as a percentage of the original purchase price or as a credit amount in dollar value. The second discount is determined based on the accrued discount for each of the first group of users at the first transaction milestone. For example, if the accrued discount at the first transaction is $20 ($10 + $10), the second discount is determined at 20% [($20/$100)X100]

[0066] For purchases within the intermediate transaction milestone, if the allocated discount and the second discount is 30% and 20% respectively, the accrued discount is 10% (20% - 10% = 10%) of the total original purchase value of the products. If the total products sold within the intermediate transaction milestone is three, the total original purchase value of the products is $300, and the accrued discount for the three products will be $30 (10% X $300). The accrued discount is therefore the cumulative value of the discounts applied to each of the products at the intermediate transaction milestone. The accrued discount at the intermediate transaction milestone is then distributed proportionately between the first group of users and the second group of users. The proportion of distribution is determined by the transaction processing system. For example, the accrued discount can be distributed in a proportion of 55% to the first group of users and 45% to the second group of users. The distributed accrued discount is subsequently split equally between each of the respective groups of users. For example, if the accrued discount is $30, the first group of users (2 in total) will receive $16.50 while the second group of users (3 in total) will receive $13.50. Each user in the first group will receive a total of $8.25 ($16.50/2) and each user in the second group will receive a total of $4.50 ($13.50/3). Once the intermediate transaction milestone has been achieved, this will mean that the first group of users will be entitled to receive a first reward amount that includes reward amounts computed at the first transaction milestone and the intermediate transaction milestone. The final discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone. For example, if the accrued discount for each of the second group of users for the intermediate transaction milestone is $24.50 ($20 + $4.50), the final discount is determined at 24.5% [($24.5/$100)X100]

[0067] For purchases within the final transaction milestone, if the allocated discount and the final discount is 50% and 24.5% respectively, the accrued discount is 26.5% (50% - 24.5% = 26.5%) of the total original purchase value of the products. If the total products sold within the intermediate transaction milestone is five, the total original purchase value of the products is $500, and the accrued discount for the five products will be $132.50 (26.5% X $500). The accrued discount is therefore the cumulative value of the discounts applied to each of the products at the final transaction milestone. The accrued discount at the final transaction milestone is then distributed proportionately between the first group of users, the second group of users and the final group of users. The proportion of distribution is determined by the transaction processing system. For example, the accrued discount can be distributed in a proportion of 40% to the first group of users, 35% to the second group of users and 25% to the final group of users. The distributed accrued discount is subsequently split equally between each of the respective groups of users. For example, if the accrued discount is $132.50, the first group of users (2 in total) will receive $53 while the second group of users (3 in total) will receive $46.40, and the final group of users (5 in total) will receive $33.13. Each user in the first group will receive a total of of $26.50 ($53/2), each user in the second group will receive a total of $15.50 ($46.4/2), and each user in the final group will receive $6.60. Once the final transaction milestone has been achieved, this will mean that the first group of users will be entitled to receive a first reward amount that includes reward amounts computed at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone. The second group of users will be entitled to receive a second reward amount that includes reward amounts computed at the first transaction milestone and the intermediate transaction milestone.

[0068] At step 370, the transaction processing system transmits the first reward amount, the second reward amount, and the third reward amount due to each of the respective groups of users. The reward amounts are transmitted to the user account of the payer device. In some embodiments, the reward amount may be in the form of a cash amount that is based on the original purchase amount of the product. The reward amount may be displayed to the user through an interface on the payer device implemeting a program provided by the marketplace system. In some embodiments, the reward amount may be displayed via an ‘in-app’ message or alert notification. The payer device may also implement a web browser that allows the payer device to connect with the marketplace system.

[0069] Figure 4 shows a flow chart illustrating a method 400 for processing purchase transactions of users at a remote point of sale according to an embodiment of the present disclosure. The flow chart illustrates how the tracking algorithm of the processing transaction system 130 tracks the cumulative transaction amount of the product on the marketplace system 110. Prior to step 410, the transaction processing system 130 will receive transaction data relating to one purchase transaction from a user initiating a purchase transaction on the marketplace system 110 and may also identify a user based on user information associated with a user registered on the marketplace system 110. At step 410, the transaction processing system 130 determines if the current cumulative transaction amount of the product is less than a first transaction milestone on the marketplace systeml lO. If the current cumulative transaction amount of the product is less than a first transaction milestone, the transaction processing system 130 will apply a first discount on the product at step 415, and proceed to process the purchase transaction by the user. In some embodiments, the first discount is the minimum discount. The purchase transactions by users who had obtained the first discount on the product is defined as the first group of users within the first transaction milestone. In some embodiments, the first transaction milestone and the first discount are based on the input discount of the transaction processing system and the input data by the merchant device as explained previously.

[0070] On receipt of a subsequent purchase transaction of a subsequent user, if the current cumulative transaction amount of the product is more than or equal to a first transaction milestone, the tracking algorithm receives the indication that the first transaction milestone has been achieved. The transaction processing system 110 will determine and award a first reward amount due to the first group of users within the first transaction milestone at step 430. In some embodiments, the first reward amount due to the first group of users within the first transaction milestone are computed by the tracking algorithm as explained previously. The transaction processing system 110 will also apply a second discount on the product where the second discount is higher than the first discount. In some embodiments, the second discount is the intermediate discount computed by the tracking algorithm based on the input data received by the merchant. In some embodiments, the second discount is the intermediate discount computed by the tracking algorithm based on the input data received by the merchant. In some embodiments, the second discount is determined based on the accrued discount for each of the first group of users at the first transaction milestone.

[0071] At step 440, once the user proceeds with the offer, the transaction processing system 110 will proceed to process the purchase transaction transmitted by the user of the payer device as explained in paragraphs [0063] to [0065] above. Once the user proceeds with the purchase of the product on the marketplace system, the transaction processing system receives a payment transaction data associated with the payment amount of the product. The transaction processing system will log the payment transaction data into the storage for tracking by the tracking algorithm.

[0072] At step 450, on a subsequent purchase transaction received by the same or another user of the payer device, the transaction processing system 110 receives a purchase transaction from the marketplace system 110 and may also identify the user based on user information associated with the user registered on the marketplace system. The transaction processing system 110 determines if the current cumulative transaction amount of the product is less than an intermediate transaction milestone on the marketplace system. If the current cumulative transaction amount of the product is less than the intermediate transaction milestone, the transaction processing system will continue to apply a second discount on the product which leads to steps 430 and 440.

[0073] If the current cumulative transaction amount of the product is more than or equal to the intermediate transaction milestone, the tracking algorithm will receive an indication that the intermediate transaction milestone has been achieved. The transaction processing system 110 will determine and award a first reward amount due to the first group of users within the first transaction milestone, and a second reward amount due to the second group of users within the intermediate transaction milestone at step 460 . In some embodiments, the first reward amount due to the first group of users within the first transaction milestone and the second reward amount due to the second group of users within the intermediate transaction milestone are computed by the tracking algorithm as explained previously. The first group of users will receive an additional reward amount in addition to the reward amount received at the first transaction milestone. The transaction processing system 110 will also apply a third discount on the product. In some embodiments, the third discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone.

[0074] While Figure 4 shows a first and intermediate transaction milestone, a person skilled in the art would recognize that the intermediate transaction milestone can include a second, third, fourth, or fifth transaction milestone that can be computed by the tracking algorithm based on the input data received by the merchant device or the merchant operating the merchant device. The intermediate transaction milestone is a milestone that occurs between the first transaction milestone and the final transaction milestone. Once the transaction processing system determines that a third discount amount is to be applied on the product, it will proceed to process the purchase transaction of the user at step 480. Once the subsequent user proceeds with the purchase of the product on the marketplace system, the transaction processing system receives a payment transaction data associated with the payment amount of the product. The transaction processing system 110 will log the payment transaction data into the storage for tracking by the tracking algorithm.

[0075] At step 490, on a subsequent purchase transaction received by the same or subsequent user of the payer device, the transaction processing system 110 receives a purchase transaction from the marketplace system 110 and may also identify the user based on user information associated with the user registered on the marketplace system. The transaction processing system 110 determines if the current cumulative transaction amount of the product matches a final transaction milestone. If the current cumulative transaction amount of the product is less than the final transaction milestone, the transaction processing system 110 will continue to apply a third discount on the product which leads to steps 470 and 480. If the current cumulative transaction amount of the product is more than or equal to the final transaction milestone, the tracking algorithm receives the indication that the final transaction milestone has been achieved. The transaction processing system 110 will determine and award a first reward amount due to the first group of users within the first transaction milestone, a second reward amount due to the second group of users within the first transaction milestone, and a final reward amount due to the final group of users wihin the final transaction milestone at step 495. In some embodiments, the first, second and final reward amounts due to the first, second and final group of users within the transaction milestones, respectively, are computed by the tracking algorithm as explained previously. In some embodiments, the third discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone. The transaction processing system 110 proceed to end the campaign immediately and no further discount on the product will be applied on the product.

[0076] In various embodiments, different forms of discounts and reward amounts are available in which embodiments of the present invention may be implemented. In some embodiments, for example, reward amounts can be deployed in 2 ways - Discounts and Incentive.

Discounts: A discount is provided as a percentage of the original sale price and is deducted off the sale price of the product. In some embodiments, users are given more discounts as prior purchasers of the product will receive accrued discounts as each transaction milestone is achieved. Marketplace systems can set up loyalty campaigns for online customers to visit their online shops and purchase more products. If the customer visits a specified number of times with a minimum spend, within a specified period, accrued discounts can be released back to the customer as a discount on their purchase.

Incentive: Online retailers can create an incentive campaign for customers to take up two or more products from their store. Incentives can be in the form of a cash credit to the user’s account. Particularly well suited for institutions such as a bank where there are numerous financial products. Customers can be incentivized with increasing incentives as they buy more products such as home loans, education loans, personal loans, etc..

[0077] Figures 5a and 5b provide a description of an assymetric transaction milestone model according to various embodiments of the present invention. In some embodiments, the asymmetric transaction milestone model is the unequal distribution of discounts and reward amounts at various transaction milestones, with a bias to earlier purchasers or users who have purchased the product. The assymetric transaction milestone discount and reward amount model rewards the early purchasers of the product with a relatively higher reward amount as compared to the reward amounts awarded to later purchasers at subsequent transaction milestones.

[0078] As mentioned above, the tracking algorithm computes the first transaction milestone (for example, Tier 1), intermediate transaction milestone (for example, Tier 2) and final transaction milestone (for example, Tier 3) based on the input data received from the merchant device.

[0079] The transaction processing system awards at least one reward amount to each purchaser at each transaction milestone. In some embodiments, the reward amount is determined based on the allocation of the accrued discount to each of the purchasers within the transaction milestone or previous transaction milestones, if any. In some embodiments, the accrued discount is determined based on the difference between the allocated discount and the discount for the respective transaction milestone. For example, for purchases within the first transaction milestone, if the first allocated discount and the first discount is 20% and 10% respectively, the accrued discount is 10% (20% - 10% = 10%) of the total original purchase value of the products. If the total products sold within the first transaction milestone is two, the total original purchase value of the products is $200, and the accrued discount for the two products will be $20. The reward amount for each purchaser is the accrued discount split equally between the purchasers within the first transaction milestone, and each purchaser will be awarded a reward amount of $10. The reward amount can be defined as a percentage of the original purchase price or as a credit amount in dollar value. The second discount is determined based on the aggregate of the accrued discount and the reward amount

[0080] In Figure 5b, for purchases within the first transaction milestone, if the first allocated discount and the first discount is 20% and 15% respectively, the accrued discount is 5% (20% - 15% = 5%) of the total original purchase value of the products. If the total products sold within the first transaction milestone is two, the total original purchase value of the products is $200, and the accrued discount for the two products will be $10. Each purchaser within the first transaction milestone will receive a reward amount of $5 (shown as Cashback #1). The second discount is determined based on the accrued discount for each of the first group of users at the first transaction milestone. For example, if the accrued discount at the first transaction is $20 ($10 + $10), the second discount is determined at 20% [($20/$100)X100]

[0081] In another example, as shown in Figure 5b, if the second allocated discount (i.e. allocated discount determined within the second transaction milestone) is 30% and the second discount is 20%, and the number of products to be sold within the second transaction milestone is determined at three, the accrued discount for the second transaction milestone will be 10% (i.e. 30% - 20% = 10%). The accrued discount for the second transaction milestone will therefore be $30 (i.e. 10% of (3 X $100) = $30). In some embodiments, the allocated reward amount for each purchaser is the accrued discount for a transaction milestone distributed proportionately between purchasers within the transaction milestone and previous transaction milestones, if any. The proportion of distribution is predetermined by the transaction processing system and is computed by the tracking algorithm. In some embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a previous transaction milestone than to the current transaction milestone. In other embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a current transaction milestone than to the previous transaction milestone. For example, if the accrued discount occuring within the second transaction milestone is $30, 55% of the accrued discount can be distributed to the first transaction milestone and 45% of the accrued discount can be distributed to the second transaction milestone. The accrued discount for the first transaction milestone would be split equally as the allocated reward amount for each purchaser who had purchased within the first transaction milestone. Similarly, the accrued discount for the second transaction milestone would be split equally as the allocated reward amount for each purchaser who had purchased within the second transaction milestone. In Figure 5b, each purchaser within the second transaction milestone will receive an allocated reward amount (shown as Cashback #1) and each purchaser within the first transaction milestone will receive an allocated reward amount (shown as Cashback #2) according to the proportion of distribution of the accrued discounts between the first and second transaction milestones. The final discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone. For example, if the accrued discount for each of the second group of users for the intermediate transaction milestone is $24.50 ($20 + $4.50), the final discount is determined at 24.5% [($24.5/$100)X100]

[0082] In another example as shown in Figure 5b, if the third allocated discount (i.e. allocated discount determined within the final transaction milestone) is 50% and the final discount is 25%, and the number of products to be sold within the final transaction milestone is determined at 5, the accrued discount for the final transaction milestone will be 25% (i.e. 50% - 25% = 25%). The accrued discount for the final transaction milestone will therefore be $125 (i.e. 25% of (5 X $100) = $125). In some embodiments, the accrued discount is distributed proportionately between purchasers within the transaction milestone and previous transaction milestones. The proportion of distribution is predetermined by the transaction processing system and is computed by the tracking algorithm. In some embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a previous transaction milestone than to the current transaction milestone. In other embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a current transaction milestone than to the previous transaction milestone. For example, if the accrued discount occuring within the final transaction milestone is $125, 25% of the accrued discount can be distributed to the final transaction milestone, 25% of the accrued discount can be distributed to the second transaction milestone, and 40% of the accrued discount can be distributed to the first transaction milestone. The distributed accrued discount for each transaction milestone would then be split equally as the allocated reward amount for each purchaser who had purchased within the transaction milestones. For example, the distributed accrued discount for the final transaction milestone (i.e. 25% X $125 = $31.25) would be split equally between 5 purchasers. Each purchaser would receive the allocated reward amount who had purchased within the final transaction milestone. In Figure 5b, each purchaser within the final transaction milestone will receive an allocated reward amount (shown as Cashback #1), each purchaser within the second transaction milestone will receive an allocated reward amount (shown as Cashback #2), and each purchaser within the first transaction milestone will receive an allocated reward amount (shown as Cashback #3) according to the proportion of distribution of the accrued discounts between the first, second and final transaction milestones.

[0083] Once the final transaction milestone has been achieved, and the total sales revenue or cumulative transaction amount has been achieved, the tracking algorithm will determine a final accrued discount. The final accrued discount is determined based on the difference between the final allocated discount and the final discount for the final transaction milestone. For example, for purchases within the final transaction milestone, if the final allocated discount and the final discount is 50% and 25% respectively, the accrued discount is 25% (50% - 25% = 25%) of the total original purchase value of the products. If the total products sold within the final transaction milestone is 5, the total original purchase value of the products is $500, and the final accrued discount for the five products will be $125 (25% of (5X$100) = $125). In some embodiments, the final accrued discount is distributed proportionately between purchasers within the transaction milestone and previous transaction milestones. The proportion of distribution is predetermined by the transaction processing system and is computed by the tracking algorithm. In some embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a previous transaction milestone than to the current transaction milestone. In other embodiments, the proportion of distribution of the accrued discount can be distributed proportionately more to a current transaction milestone than to the previous transaction milestone. For example, if the final accrued discount is $125, 40% of the accrued discount can be distributed to purchasers within the final transaction milestone, 35% of the accrued discount can be distributed to purchasers within the second transaction milestone, and 25% of the accrued discount can be distributed to purchasers within the first transaction milestone. The distributed accrued discount for each transaction milestone would then be split equally as the allocated reward amount for each purchaser who had purchased within the transaction milestones. For example, the distributed accrued discount for the final transaction milestone (i.e. 40% X $125 = $50) would be split equally between 5 purchasers. Each purchaser would receive the allocated reward amount (i.e. $10) who had purchased within the final transaction milestone. In Figure 5b, each purchaser within the final transaction milestone will receive an allocated reward amount (shown as Cashback #2), each purchaser within the second transaction milestone will receive an allocated reward amount (shown as Cashback #3), and each purchaser within the first transaction milestone will receive an allocated reward amount (shown as Cashback #4) according to the proportion of distribution of the accrued discounts between the first, second and final transaction milestones.

[0084] In other words, as shown in Figure 5b, the purchasers within the first transaction milestone would have received four allocated reward amounts (Cashback #1 - #4) once the final transaction milestone has been achieved, and the purchasers within the second transaction milestone would have received three allocated reward amounts (Cashback #l-#3) once the final transaction milestone has been achived, and the purchasers within the final transaction milestone would have received two allocated reward amounts (Cashback #l-#2). The total allocated reward amounts and the discount at each transaction milestone for each purchaser is therefore the total savings on the product or service purchased. For example, as shown in Figure 5a, the total allocated reward amounts distributed to each purchaser amounts to 69% of the original sales price of the product within the first transaction milestone. This is obtained by aggregating the allocated reward amounts (Cashback #1 - #4) in dollar value and computing it as a percentage of the original sales price of the product. For the second transaction milestone, the total allocated reward amount distributed to each purchaser amounts to 53% of the original sales price of the product. For the final transaction milestone, the total allocated reward amount distributed to each purchaser amounts to 50% of the original sales price of the product.

[0085] Figures 6a and 6b provide a description of a symmetric transaction milestone model according to various embodiments of the present invention. In some embodiments, the symmetric transaction milestone model is the equal distribution of reward amounts to all past purchasers of the product regardless of the transaction milestones achieved. While the symmetric transaction milestone model awards a corresponding higher discount to the product at each transaction milestone (as shown by tier 1, tier 2 and tier 3 in Figure 6a), the reward amounts to all the purchasers remain the same across all the transaction milestones.

[0086] Similar to the tracking algorithm for the assymmetric transaction milestone model shown in Figures 5a and 5b, the tracking algorithm computes the first transaction milestone (for example, Tier 1), intermediate transaction milestone (for example, Tier 2) and final transaction milestone (for example, Tier 3) based on the input data received from the merchant device. The tracking algorithm also receives an input discount from the transaction processing system for computing an allocated discount and discounts (i.e. first discount, second discount, third discount, and final discount, etc.) to be applied on each product within each transaction milestone. In some embodiments, the input discount is the discount release predetermined by the transaction processing system for each transaction milestone. For example, the transaction processing system may determine that the input discount at the first transaction milestone is set at 40% (not shown), the intermediate transaction milestone is set at 60% (not shown), and the final transaction milestone is set at 100% (not shown). Similar to the above, the tracking algorithm also computes an allocated discount and discount to be applied on the products at each transaction milestone. The tracking algorithm also computes the allocated reward amount for each purchaser within each transaction milestone as explained previously. The difference between the symmetric and assymmetric transaction milestone is the absence of a final accrued discount that is computed and distributed once the final milestone transaction has been achieved.

[0087] In various embodiments, this symmetric transaction milestone model is applied where it is necessary to have an equal distribution of reward amount. For example, it can be applied to a Government initiative to promote a particular campaign (ie. carbon emissions incentive scheme). [0088] Figure 7 illustrates a scenario application of a symmetric transaction milestone model based on a retrospective variable distribution model according to various embodiments of the present invention. In some embodiments, symmetric transaction milestone model model is applied in instances where it is necessary to have an equal distribution, for example, a Government initiative to promote a national initiative, for example, a carbon emissions incentive scheme where car owners are monetarily incentivised for not exceeding a stipulated carbon emissions limit within a given period of time. In other embodiments, a health promotion board of a country could launch a health campaign to incentivise a targeted segment of the population to exercise more often and to do more physical activities to promote a healthy lifestyle. As an incentive, they are offered discounts on their groceries if they achieve a certain level of activity recorded and transmitted via an IOT device. Another example could be the tourism board of the country launching a campaign to incentivise tourists with increasing discounts for their hotel stay if they ‘check-in’ to a given number of local attractions.

[0089] Figure 9 illustrates an embodiment of how the transaction processing system can be implemented on a marketplace system in accordance with various embodiments of the present invention. As shown in Figure 9, a marketplace system, for example, an e- commerce platform provider provides the necessary information to establish a user account with the system, wherein each retailer or e-commerce platform provider has the ability to electronically access the user account preferably anytime so as to structure the rewards or discounts as further described below. To use the system in each of the following environments, requires the technology layer to be built in a modular format, and configured to fit according to the various platform specifications. However, the approach to using the transaction processing system by large retailers or small-time retailers peddling their wares on e-commerce platforms, or on their own online stores, is the same. [0090] The first step requires the transaction processing system to be communicative with the marketplace system. At step 930, the transaction processing system allows a merchant to establish or to log into a merchant account with the transaction processing system that is communicative with the marketplace system, wherein the merchant has the ability to electronically access the metchant account preferably anytime so as to structure the discounts or reward amounts. Once the merchant has established the merchant account with the transaction processing system, and is able to access the merchant account at step 931, the merchant can determine the input data required for structuring the discounts and reward amounts. At step 932, the merchant provides the following input data to start its campaign:

What is the minimum discount I am willing to offer

What is the maximum discount I am willing to offer

What is the sales target I want to achieve in return (It can be from 10 to

1000)

[0091] At step 933, once the transaction processing system is operative and configured according to the input data selected by the merchant, when a merchant completes the creation of the input data for the product to be sold on the marketplace system, the product is automatically generated on the marketplace system. This generation of the product for offer on the marketplace system may include generating a

QR code, a merchant identifier that identifies the merchant offering the product for sale to users of the marketplace system, a product identifier that identifies the product offered for sale on the marketplace system. In some embodiments, an automatically generated QR code that represents the offer is created and placed next to the product that is on discount on the marketplace system. In some embodiments, the offer can be made available offline, through the use of a physically printed QR code, a promotion code, or any other suitable method that electronically identifies that the product is tagged to a deep discount offer on a display shelf of the retail outlet. At step 924, the product for sale is offered to users of the marketplace system. The online discount campaign for the product begins, the tracking algorithm for tracking the transaction milestones are activated, and the applicable discounts will kick in in real-time once the transaction milestones have been achieved.

[0092] To make a purchase on a marketplace system, the marketplace system allows a user to establish or to log into a user account with the marketplace system that is communicative with the transaction processing system with a payer device, wherein the user has the ability to electronically access the user account on the payer device preferably anytime so as to purchase products on the marketplace system. Once the user has established the user account with the marketplace system, and is able to access the user account at step 911, the user can select the products for purchase at step 912. In some embodiments, the payer device may also implement a web browser that allows the user to log into the user account on the marketplace system. The tracking algorithm will determine the discount to be displayed to the payer device on the marketplace system based on the transaction milestone achieved. In some embodiments, the discount may be displayed via an “in-app” message or alert.

[0093] At step 913, the product selected will be placed in the checkout process where the discounted price for payment will be displayed. The discount may be displayed as a line item deduction on the financial statement or invoice. At step 914, the transaction processing system will also determine if the user account is eligible for a reward amount or a cashback amount that can be further applied on the purchase price of the product. The tracking algorithm determines if the user account is eligible for a reward amount based on whether the user has accrued a reward amount in the user account for past purchases with the merchant or the marketplace system. For example, if the user has purchased the same product in the past and was awarded a reward amount, the reward amount will be accrued in the user account for use on subsequent purchases of the same product or other products sold by the same merchant on the marketplace system. If a reward amount is eligible for the product, at step 915, the reward amount will be applied to the purchase price of the product by deducting the reward amount from the purchase price. The purchase price may include the discount from the previous step. The reward amount will also be deducted from the user account. If a reward amount is not eligible for the product, at step 916, the purchase price (less the discount of the previous step) of the product will simply be displayed.

[0094] At step 917, the user initiates the purchase transaction through the payer device. The user may initiate the purchase transaction by initiating payment with a credit or debit card, or through some other payment account associated with other external payment provider services. The purchase transaction may be authenticated through various authentication protocols for the purchase transaction to be proceessed and authenticated by the marketplace system. Once the purchase transaction has been processed for payment, the payment transaction data will be generated and transmitted to the transaction processing system at step 917. The payment transaction data may include the user identifier, the total transaction value including the discount, the product identifier, the transaction identifier, and a transaction timestamp. At step 918, the payment transaction data will be received by the transaction processing system for tracking by the tracking algorithm. The payment transaction data will be stored in the database of the transaction processing system, or in an external storage device, such as a cloud server located outside of the computing system.

[0095] At step 921, the payment transaction data will also be transmitted to the marketplace system for further processing. Based on the total transaction value for the product, the marketplace system may deduct a reward amount and/or transaction fees from the total transaction value of the product before transmitting it to the merchant. A commission fee may also be due to an external provider associated with the transaction processing system based on the total transaction value. The reward amount may be a separate reward amount awarded by the marketplace system to the user account based on its own reward elibility system, and this reward amount will be credited into the user account for use on subsequent purchases on the marketplace system at step 934. In some embodiments, the marketplace system may charge the merchant transaction fees for allowing the merchant to offer its products for sale on the marketplace system, and the transaction fees will be deducted from the total transaction value. Once the total transaction value has been apportioned accordingly to the external provider and to the merchant, the said commission fee and the transaction value will be transmitted to the external provider and to the merchant respectively.

[0096] At step 919, the tracking algorithm determines if a reward amount is eligible for the user identifier or the user account for the transaction identifier received. If a reward amount is eligible and due to the user account based on the achievement of the transaction milestones, the reward amount will be credited to the user account as shown in steps 921 and 934 once the transaction milestone is achieved. If no reward amount is eligible, at step 920, the transaction processing system will proceed to update the offer or discount for the product on the marketplace system at step 922 based on the recent transaction of the product. For example, if a certain transaction milestone has been achieved with the recent transaction, the transaction processing system will update the discount for the product with the new discount, which may be more or less than the previous discount offered on the marketplace system.

[0097] In some embodiments, the marketplace system may relate to a physical retail outlet for allowing users to purchase products in-store. The following steps taken by the customer and the retailer needs to be performed;

Visit the store and turn on the camera app • Scan the QR code and be directed to the online listing of the product on sale showing the product and promotional price;

• Pay for the item within the e-commerce website on the mobile device

• Customer is then asked if he would like to have the item delivered to his residence, or to collect the product in-store;

• If the customer chooses to collect in-store, a Proof-Of-Purchase redemption QR code is generated;

• The customer then proceeds to the cashier or a redemption booth and presents the Proof-Of-Purchase QR code;

• The retail staff will scan the code (or input the alphanumeric offer code into a retailer terminal) to confirm the Proof-Of-Purchase;

• Once validated, the staff will hand the customer his product and invalidate the code.

[0098] Figure 10 provide an overview of an assymetric transaction milestone model according to various embodiments of the present invention. As mentioned above, the asymmetric transaction milestone model is the unequal distribution of discounts and reward amounts at various transaction milestones, with a bias to earlier purchasers or users who have purchased the product. The assymetric transaction milestone discount and reward amount model rewards the early purchasers of the product with a relatively higher reward amount as compared to the reward amounts awarded to later purchasers at subsequent transaction milestones.

[0099] The transaction processing system 1000 determines for a first set of purchase transactions by a first group of users for the product (TRX#1 and TRX#2) if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone as described above. In some embodiments, the first discount is the minimum discount as determined by the merchant device. In some embodiments, the merchant may apply the first discount to all purchases made by the user and subsequent purchasers of the product, as long as the current cumulative transaction amount of the product is less than the first transaction milestone of the product (i.e. TRX#1 and TRX#2). Once the first transaction milestone is achieved, the tracking algorithm will determine a first reward amount to be awarded to each of the first group of users as explained above.

[00100] The transaction processing system 1000 will determine for a second set of purchase transactions by a second group of users (TRX#3 to #5) for the product if a second discount is applicable on the product by comparing a current cumulative transaction amount of the product with the intemediate transaction milestone. If the current cumulative transaction amount of the product is more than or equal to the first transaction milestone of the product, the tracking algorithm will provide a second discount. Once the intermediate transaction milestone is achieved, the tracking algorithm will determine a second reward amount to be awarded and apportioned to each of the first group of users and each of the second group of users as explained above.

[00101] The transaction processing system determines for a third set of purchase transactions by a third group of users for the product if a final discount is applicable on the product by comparing a current cumulative transaction amount of the product with the final transaction milestone. Once the final transaction milestone is achieved, the tracking algorithm will determine a final reward amount to be awarded and apportioned to each of the first group of users, each of the second group of users and each of the final group of users as explained above.

[00102] Each purchase transaction by each of the users will be logged and recorded in the database of the transaction processing system so that the tracking algorithm can keep track of all the purchase transactions for the product. The reward amounts that are apportioned and awarded to each user is also logged and recorded in the database of the transaction processing system.

E-Wallet

[00103] Upon issuance of the reward amount, the reward amount is deposited into an e-wallet of a user account for storage and subsequent purchases on the marketplace system. The function of the e-wallet in the scheme of things where the system and method is concerned, is to be a receptacle and a depository for the receiving of earned reward amounts. Other than that, the e-wallet also serves as:

• An electronic storage of money;

• A means to transfer moneys between accounts;

• A method of payment for purchases via online payment, bank transfer, QR payment, debit card and credit card payment with stored card details;

• A platform to set and execute monthly micro contributions for investments, e-loans, charitable causes; and

• A method to present and redeem Proof-Of-Purchase codes to collect in-store purchases.

[00104] Therefore, what has been described is a system and method for processing purchase transactions in order to progressively release more discounts in the form of reward amounts, and retrospectively distribute these reward amounts to users when transaction miletones have been achieved. In some embodiments, the system and method additionally sets, calculates, tracks, executes, distributes, and reconciles contractually binding financial transactions, automatically and speedily in an auditable format. To facilitate this function, the system can be built with the use of blockchain technology. In some embodiments, the system can be implemented with use of blockchain technology in accordance with various embodiments of the present invention. The data block will include, but not limited to, the following payment transaction data:

• Retailer ID

• Campaign ID

• Transaction ID

• Purchaser ID

• Device Type

• Date of Purchase

• Time of Purchase

• Item(s) Purchased

• Method of Payment

• Amount Paid

• Tier Level Engagement

• Cashback Issuance ID

• Date of Cashback

• Cashback Amount

• Campaign Status

[00105] In some embodiments, the system and method can be implemented with use of artificial intelligence in accordance with various embodiments of the present invention. While the online retailer endeavors to give as much discount as possible to make the offer attractive, the system also applies artificial intelligence to advise the retailer the level of discount they should offer, so as to help them maximize revenue retention. For example, if a product is discounted at 50%, would the retailer see the same level of sales if it was at 49%? If the system determines that the same level of sales would be achieved if the product is discounted at 49%, would it still be the same at 47%? Or 45%? Or 40%?

[00106] Based on customer responses to previous offers listed by retailers selling a product of a similar nature (ie. hairdressing packages), the system is able recommend a maximum discount that will ensure a similar level of sales success, while ensuring maximum revenue retention. Afterall, 1% less in discount is 1% more in revenue.

[00107] So, with artificial intelligence integrated in the system, the method and system can now address the question of, ‘at what price discount percentage would tip a person from being a shopper, into a customer, while ensuring that the retailer does not give too much in discount to close a sale?’.

[00108] While the invention has been particularly shown and described with reference to specific embodiments, it should be understood by those skilled in the art that various changes in form and detail may be made therein without departing from the spirit and scope of the invention as defined by the appended claims. The scope of the invention is thus indicated by the appended claims and all changes which come within the meaning and range of equivalency of the claims are therefore intended to be embraced.

Claims

What is claimed is:

1. A method for processing purchase transactions of users at a remote point of sale, the method performed by a transaction processing system in communication with a marketplace system associated with the remote point of sale, comprising: receiving input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm, wherein the input data comprises a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system; determining for a first set of purchase transactions by a first group of users for a product, by the tracking algorithm, if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone; determining for a second set of purchase transactions by a second group of users, by the tracking algorithm, if a second discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the intermediate transaction milestone; determining for a third set of purchase transactions by a third group of users, by the tracking algorithm, if a third discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the final transaction milestone; applying the first discount, the second discount and the final discount to the product in response to the determinations; determining, by the tracking algorithm, a first reward amount due to each of the first group of users, a second reward amount due to each of the second group of users, and a third reward amount due to each of the third group of users based on an allocation of an accrued discount of the purchase transactions at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively; transmitting the first reward amount, the second reward amount, and the third reward amount due to each of the respective groups of users.

2. The method according to claim 1, wherein the accrued discount is the cumulative value of the discounts applied to each of the products at the first transaction milestone, the intermediate transaction milestone, and the final transaction milestone.

3. The method according to claim 1, wherein the first discount is the minimum discount.

4. The method according to claim 1, wherein the second discount is determined based on the accrued discount for each of the first group of users at the first transaction milestone.

5. The method according to claim 1, wherein the final discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone.

6. The method according to claim 1, wherein the accrued discount at the intermediate transaction milestone is distributed proportionately between the first group of users and the second group of users, wherein the accrued discount is subsequently distributed equally between the first group of users and the second group of users.

7. The method according to claim 1, wherein the accrued discount at the final transaction milestone is distributed proportionately between the first group of users, the second group of users and the final group of users, wherein the accrued discount is subsequently distributed equally between the first group of users, the second group of users and the final group of users.

8. The method according to claim 1, wherein the first reward amount due to each of the first group of buyers includes the accrued discount distributed proportionately at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone.

9. The method according to claim 1, wherein a first allocated discount, a second allocated discount and a final allocated discount is attributed to the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively.

10. The method according to claim 3, wherein the first allocated discount is the product of a first input discount and the maximum discount, wherein the first input discount is determined by the transaction processing system.

11. The method according to claim 3, wherein the second allocated discount is the product of the second input discount and the maximum discount, wherein the first input discount is determined by the transaction processing system.

12. The method according to claim 3, wherein the final allocated discount is the product of the final input discount and the maximum discount, wherein the final input discount is determined by the transaction processing system.

13. The method according to claim 1, wherein the intermediate transaction milestone includes at least one transaction milestone.

14. The method according to claim 1, wherein the current cumulative transaction amount of the product is associated with the current cumulative purchase transaction value of the product on the marketplace system.

15. The method according to claim 1, wherein the current cumulative transaction amount of the product is associated with the current cumulative quantity of products transacted on the marketplace system.

16. A system for processing purchase transactions of users at a remote point of sale performed by a transaction processing system in communication with a marketplace system associated with the remote point of sale, the system comprising: at least one processor; and at least one memory including computer program code; the at least one memory and the computer program code configured to, with at least one processor, cause the server at least to: receive input data from a merchant device for determining a first transaction milestone, an intermediate transaction milestone and a final transaction milestone based on a tracking algorithm, wherein the input data includes a minimum discount, a maximum discount and a final cumulative transaction amount of the product on the marketplace system; determine for a first set of purchase transactions by a first group of users for a product, by the tracking algorithm, if a first discount is applicable on the product by comparing a current cumulative transaction amount of the product with the first transaction milestone; determine for a second set of purchase transactions by a second group of users, by the tracking algorithm, if a second discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the intermediate transaction milestone; determine for a third set of purchase transactions by a third group of users, by the tracking algorithm, if a third discount is applicable on the product by comparing the current cumulative transaction amount associated with the product matches with the final transaction milestone; apply the first discount, the second discount and the final discount to the product in response to the determinations; determine, by the tracking algorithm, a first reward amount due to each of the first group of users, a second reward amount due to each of the second group of users, and a third reward amount due to each of the third group of users based on an allocation of the accrued discount of the purchase transactions at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively; transmit the first reward amount, the second reward amount, and the third reward amount due to each of the respective groups of users.

17. The system according to claim 16, wherein the accrued discount is the cumulative value of the discounts applied to each of the products at the first transaction milestone, the intermediate transaction milestone, and the final transaction milestone.

18. The system according to claim 16, wherein the first discount is the minimum discount.

19. The system according to claim 16, wherein the second discount is determined based on the accrued discount for each of the first group of users at the first transaction milestone.

20. The system according to claim 16, wherein the final discount is determined based on the accrued discount for each of the second group of users at the intermediate transaction milestone.

21. The system according to claim 16, wherein the accrued discount at the intermediate transaction milestone is distributed proportionately between the first group of users and the second group of users, wherein the accrued discount is subsequently distributed equally between the first group of users and the second group of users.

22. The system according to claim 16, wherein the accrued discount at the final transaction milestone is distributed proportionately between the first group of users, the second group of users and the final group of users, wherein the accrued discount is subsequently distributed equally between the first group of users, the second group of users and the final group of users.

23. The system according to claim 16, wherein the first reward amount due to each of the first group of buyers includes the accrued discount distributed proportionately at the first transaction milestone, the intermediate transaction milestone and the final transaction milestone.

24. The system according to claim 16, wherein a first allocated discount, a second allocated discount and a final allocated discount is attributed to the first transaction milestone, the intermediate transaction milestone and the final transaction milestone respectively.

25. The system according to claim 24, wherein the first allocated discount is the product of a first input discount and the maximum discount, wherein the first input discount is determined by the transaction processing system.

26. The system according to claim 24, wherein the second allocated discount is the product of the second input discount and the maximum discount, wherein the first input discount is determined by the transaction processing system.

27. The system according to claim 24, wherein the final allocated discount is the product of the final input discount and the maximum discount, wherein the final input discount is determined by the transaction processing system.

28. The system according to claim 16, wherein the intermediate transaction milestone includes at least one transaction milestone.