US10540639B2 — Cryptocurrency payment network
Document text
Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
US010540639B2
United States Patent (10 ) Patent No.: US 10,540,639 B2
Brock et al. (45 ) Date of Patent: * Jan . 21, 2020
(54 ) CRYPTOCURRENCY PAYMENT NETWORK (56 ) References Cited
(71) Applicant: Square, Inc., San Francisco , CA (US ) U.S. PATENT DOCUMENTS
( 72 ) Inventors : Christopher Michael Brock , Berkeley, 1,010,893 A 12/1911 Goddard
CA (US ); Brian Grassadonia , San 10,055,715 B1 8/2018 Grassadonia et al.
Francisco , CA (US); Michael Moring , (Continued )
San Francisco , CA (US ) FOREIGN PATENT DOCUMENTS
(73 ) Assignee : Square , Inc., San Francisco , CA (US ) EP 2 953 076 A1 12/2015
WO 2019/023168 A1 1/2019
( * ) Notice : Subject to any disclaimer, the term of this
patent is extended or adjusted under 35 OTHER PUBLICATIONS
U.S.C. 154(b ) by 0 days .
This patent is subject to a terminal dis Eskandari S., et al., " Buy Your Coffee with Bitcoin : Real-World
claimer . Deployment of a Bitcoin Point of Sale Terminal,” A 2016 Intl IEEE
Conferences on Ubiquitous Intelligence & Computing , Advanced
(21 ) Appl. No.: 16 /132,160 and Trusted Computing, Scalable Computing and Communications,
(22) Filed : Sep. 14 , 2018 Cloud and Big Data Computing, Internet of People, and Smart
World Congress (UIC / ATC /SCALCOM /CBDCOM /IOP /
(65) Prior Publication Data SMARTWORL , pp . 382-389 (Jul. 18 , 2016 ).
(Continued )
US 2019/0034889 A1 Jan. 31, 2019
Related U.S. Application Data Primary Examiner Lalita M Hamilton
(63 ) Continuation of application No. 16 /011,556 , filed on ( 74 ) Attorney , Agent, or Firm Baker Botts L.L.P. -
Jun . 18 , 2018, which is a continuation of application ( 57) ABSTRACT
(Continued )
In one embodiment, a method includes receiving a request
(51) Int. Ci. for payment associated with a transaction between a first
G06Q 40/00 ( 2012.01 ) user and a second user, where the request specifies a
G06Q 20/06 ( 2012.01) payment amount in a fiat currency and identifying an
(Continued ) indication that the first user intends to satisfy the request for
(52) U.S. CI. payment using a non -fiat instrument. The method also
CPC G06Q 20/065 (2013.01); G06Q 20/06 includes initiating a first transfer of a value corresponding to
(2013.01) ; G06Q 20/20 (2013.01) ; G06Q the payment amount in the non - fiat instrument from a first
balance of the first user to one or more service balances of
20/36 ( 2013.01); a payment service and initiating a second transfer of a value
(Continued ) corresponding to the payment amount in the fiat currency
(58) Field of Classification Search from the one or more service balances of the payment
CPC G06Q 4/00 ; G06Q 20/10 ; G06Q 20/102 ; service to a second balance of the second user.
G06Q 20/40 ; G06Q 20/065; GO6Q 20/20 ;
( Continued ) 18 Claims, 16 Drawing Sheets
20
53 Set
103 83
Cakevolt ! Some 3 309 , 315 , 307.790
Styro LTORCY 208 FC 0.AM
Yraad 1213. i en delats
inciucing volyosuriin
Cryptowncy and forward
crypted customer profile
information
Same as 314 from FIG . 45
Deb !l paytie gervice
Oryptocurrency icdeerarrecht
Merchant cryptocurrency leazer
2
Suike 5:12, and 3201 fren
US 10,540,639 B2
Page 2
Related U.S. Application Data 2017/0330250 A1 * 11/2017 Arjomand G06Q 20/065
2017/0331828 A1 11/2017 Caldera et al .
No. 15 /713,322 , filed on Sep. 22 , 2017 , now Pat. No. 2017/0337534 A1 * 11/2017 Goeringer G06Q 20/02
10,055,715 . 2017/0352012 A1 * 12/2017 Hearn G06Q 20/065
2017/0352027 A1 * 12/2017 Zhang H04L 9/0825
(60 ) Provisional application No. 62 /537,395 , filed on Jul. 2017/0353309 A1 * 12/2017 Gray G06F 21/53
26 , 2017. 2019/0034888 A1 1/2019 Grassadonia et al.
(51) Int. Ci. OTHER PUBLICATIONS
G06Q 20/40 ( 2012.01)
G06Q 20/36 ( 2012.01 ) Zuberi, et al., “ Schumpeter's revenge: the gale of creative destruc
G06Q 20/20 (2012.01) tion : digital currencies and blockchain technology,” Banking &
G06Q 20/38 (2012.01 ) Financial Services Policy Report 35.5: 1(8 ), Aspen Publishers, Inc.
(May 2016 ).
(52) U.S. Cl.
CPC G06Q 20/3674 (2013.01) ; G06Q 20/381 Quibria , N., “ Blockchain Holds Promise for Cross -Border Pay
( 2013.01 ); G06Q 20/4012 (2013.01) ments,” American Banker, SourceMedia , Inc., vol. 1, Issue 122 , pp .
( 58 ) Field of Classification Search 1-4 (Aug. 10 , 2015 ).
Non - Final Office Action dated Dec. 28 , 2017, for U.S. Appl. No.
CPC . G06Q 20/3674 ; G06Q 20/4014 ; G06Q 40/00 15 /713,322, ofGrassadonia, B., et al., filed Sep. 22 , 2017 .
See application file for complete search history . Non -Final Office Action dated May 24 , 2018 , for U.S. Appl. No.
15 / 720,937 , of Grassadonia , B., et al., filed Sep. 29 , 2017 .
(56 ) References Cited Notice of Allowance dated Jul. 5 , 2018, for U.S. Appl. No. 15/713,322,
of Grassadonia, B., et al., filed Sep. 22 , 2017 .
U.S. PATENT DOCUMENTS Non -Final Office Action dated Aug. 9 , 2018, for U.S. Appl. No.
16 /011,556 , of Brock , C.M., et al., filed Jun . 18 , 2018.
10,163,079 B1 12/2018 Brock et al . Non -Final Office Action dated Aug. 16 , 2018 , for U.S. Appl. No.
2013/0282580 A1 10/2013 O'Brien et al. 16 /011,559 , of Grassadonia, B., et al., filed Jun . 18 , 2018 .
2015/0033256 A1 1/2015 Patel et al. Notice of Allowance dated Sep. 4 , 2018, for U.S. Appl. No.
2015/0170112 A1 * 6/2015 DeCastro G06Q 20/381 16 /011,556 , of Brock , C.M., et al., filed Jun . 18 , 2018 .
705/39
2015/0262173 A1 9/2015 Durbin et al. Notice of Allowance dated Sep. 10 , 2018 , for U.S. Appl. No.
2015/0324764 A1 * 11/2015 Van Rooyen G06Q 20/3276 16 /011,559 , of Grassadonia , B., et al., filed Jun . 18 , 2018 .
705/69 Non - Final Office Action dated Nov. 29 , 2018 , for U.S. Appl. No.
2015/0332256 A1 * 11/2015 Minor G06Q 20/3678 16 / 147,483 , of Brock et al., filed Sep. 28, 2018 .
705/69 Non -Final Office Action dated Nov. 29 , 2018, for U.S. Appl. No.
2016/0148198 A1 5/2016 Kelley 16 / 147,466 , of Brock et al., filed Sep. 28 , 2018 .
2016/0342976 A1 * 11/2016 Davis G06Q 20/3829 International Search Report and Written Opinion for International
2016/0342978 Al * 11/2016 Davis G06Q 20/02 Application No. PCT/US2018/043382 , dated Oct. 25, 2018 .
2016/0342985 A1 * 11/2016 Thomas G06Q 20/401 Final Office Action dated Mar. 26 , 2019 , for U.S. Appl. No.
2016/0342987 A1 * 11/2016 Thomas G060 20/401 16 / 147,483 , of Brock , C.M., et al., filed Sep. 28 , 2018 .
2016/0342994 A1 * 11/2016 Davis G06Q 20/027 Final Office Action dated Apr. 25 , 2019, for U.S Appl.No. 16 / 147,466 ,
2016/0371771 A1 * 12/2016 Serrano HO4L 67/12 of Brock , C.M., et al., filed Sep. 28 , 2018 .
2017/0011460 A1 1/2017 Molinari et al . Restriction requirement dated Sep. 20 , 2019 , for U.S. Appl. No.
2017/0061396 A1 * 3/2017 Melika G06Q 20/065 16 /457,877 , of Stipech K.D., et al., filed Jun. 28, 2019 .
2017/0091756 Al 3/2017 Stern et al.
2017/0140371 A1 5/2017 Forzley et al. Non- Final Office Action dated Oct. 18 , 2019, for U.S. Appl. No.
2017/0206523 A1 * 7/2017 Goeringer G06F 21/45 16 / 147,483 , of Brock et al., filed Sep. 28 , 2018 .
2017/0213287 A1 * 7/2017 Bruno G06Q 40/04
2017/0293898 A1 * 10/2017 Rampton G06Q 20/065 * cited by examiner
U.S. Patent Jan. 21 , 2020 Sheet 1 of 16 US 10,540,639 B2
Payment Service
108
Payment Processing Merchant Customer
Service Profiles Profiles
126 132
Payment card Cryptocurrency
network Network
Networkis } Network's). 145
Payment Service
108
Authorization
Requests Payment
Transaction Data Network s ) Application
Requests
118
Auth / Decline Payment
Indications Applications
tems
BO 105 106
20
Merchant
102 e
Payment Instruments
Customer
+ tent Requests
FIG . 1A
U.S. Patent Jan. 21 , 2020 Sheet 2 of 16 US 10,540,639 B2
PaymentService
108
Payment Processing Merchant
Profiles Profiles
126 130 132
Payment card Cryptocurrency
network
Payment Service
Authorization
Requests + Payment
Network ( s ) Application
114 Requests
Payment
Indications Applications
bo
se User 2
FIG . 1B
U.S. Patent Jan. 21 , 2020 Sheet 3 of 16 US 10,540,639 B2
Payment service
108
Crypto Crypto
CUITENCY
ledger
215 219
Customer Profile Block chain
130
Ledger
Network ( s)
Payment Network
Fist Currency Ledger
Bank Account
222
Network (s!
FIG . 2
212
103
U.S. Patent Jan. 21 , 2020 Sheet 4 of 16 US 10,540,639 B2
SPearyvmiecnet 108
FIG
3
. MD1oebv0ilc3e ARp2eqluie4csati0ong APMp2aolybim1ciaetlni0oetn AIcn.ofunot
POS 105
U.S. Patent Jan. 21, 2020 Sheet 5 of 16 US 10,540,639 B2
210 000
Payment Service
Receive items for purchase ,
and calculate value owed in Present payment options
Receive selection of
Cryptocurrency payment option
Option to selector enter an
307
Communicate cryptocurrency
payment and encrypted customer
profile information
Transmit transaction details 308
including value owed in US
Dollars and forward Calculate value owed in
encrypted customer profile cryptocurrency
312
Debit cryptocurrency ledger of
Cryptocurrency ledger of
payment service
31.4
merchant ledger in US Dollars
customer and merchant
318
Confirm transaction
FIG . 4A
U.S. Patent Jan. 21, 2020 Sheet 6 of 16 US 10,540,639 B2
Payment Service
Calculate value owed in Same as 304 , 306, 307 , and
Cryptocurrency
332
Transmit transaction details
including value owed in
cryptocurrency and forward
encrypted customer profile
cryptocurrency ledger and credit
merchant cryptocurrency ledger
334
Same as 318 , and 320 from FG .
FIG . 4B
U.S. Patent Jan. 21, 2020 Sheet 7 of 16 US 10,540,639 B2
POS
103
wa
Payment Service
108
Select merchant
402
Option to select or enter an
alias
404
Communicate alias to
merchant
Select alias 406
Receive items for purchase ,
and calculate value owed in
US Dollars
Present payment options
Receive selection of
cryptocurrency payment
option
Steps
312 , 314 , 316 , 318 , 320 froin
FIG . 3
FIG . 5
U.S. Patent Jan. 21, 2020 Sheet 8 of 16 US 10,540,639 B2
Payment service
Cryptocurrency
ledger
132
CryptoCurrency
205
Transae3043 CryptoCussrency Band Account
FiatCrocy
Payment Network
Network's
FIG . 6
210
103
U.S. Patent Jan. 21, 2020 Sheet 9 of 16 US 10,540,639 B2
POS
105 DO
Payment Service
108
Receive items for purchase ,
and calculate value owed in
US Dollars
Steps 304 , 306 , and 307 from
Communicate cryptocurrency
payment
502
Provide option to merchant
to receive payment in
cryptocurrency or traditional
currency
Receive selection to accept
payment in cryptocurrecy
506
Send wallet address and
transaction details
508 Communicate cryptocurrency
payment details
510
Reduce cryptocurrency balance
in customers wallet and increase
cryptocurrency balance in
merchants wallet
Record transaction in private
block chain
confirm transaction
320
FIG . 7A
U.S. Patent Jan. 21, 2020 Sheet 10 of 16 US 10,540,639 B2
105 o
Payment Service
108
Receive items for purchase ,
and calculate value owed in
US Dollars
302 Steps 304, 306 , 307 , 308
from Fig . 3
Provide option to merchant to receive
payment in cryptocurrency of
traditional currency
504
Receive selection to accept payment in
traditional currency
530
Transmit transaction details including
value owed in US Dollars and forward
encrypted customer profile information
310 Calculate value owed in
cryptocurrency
312
Debit cryptocurrency wallet of
customer profile and credit
cryptocurrency wallet of
payment service
532
Steps 316 , 318 , and 320 from
FIG . 3
FIG . 7B
U.S. Patent Jan. 21, 2020 Sheet 11 of 16 US 10,540,639 B2
VISA
240
$
KA
606
,
614
VISA
091.0185%$4.89T21C 8
.
FIG
612
12
.
RE
604
. 610
.
OOO VISA
380
$ w
RALEIS
602 608
.
U.S. Patent Jan. 21 , 2020 Sheet 12 of 16 US 10,540,639 B2
28
mina
624
.
WER
9
.
FIG
622
620
.
U.S. Patent Jan. 21 , 2020 Sheet 13 of 16 US 10,540,639 B2
7,245$.76 50
$
,
634
6391 640 641
7,24$5.76 50
$ 10A
FIG
.
632
.
32.,11.42%5$3B0TC 637
630
.
7,245$.76 633
IE9 635
U.S. Patent Jan. 21 , 2020 Sheet 14 of 16 US 10,540,639 B2
Bitcoin
638 643 645
,
FIG
10B
.
$
50
636
U.S. Patent Jan. 21 , 2020 Sheet 15 of 16 US 10,540,639 B2
10,$0 0
00 ctAroualmnrsba?iectoniecowndys
HMBoailxtdifcmonuigmns F
Cuir aetn cy FIG
10C
.
DAecfaoulnt Bitcoin
645 647 649
U.S. Patent Jan. 21 , 2020 Sheet 16 of 16 US 10,540,639 B2
730 732 734 736
Storage Device Ser1vice Ser2vice Ser3vice 705
710
725
720
RAM
ROM Conection
P r o c e s o r
712 FIG
.
11
715 Memory cache
700
Input Device Output Device
745 735
Comunication Interface
740
US 10,540,639 B2
1 2
CRYPTOCURRENCY PAYMENT NETWORK ogy as described and explained with additional specificity
and detail through the use of the accompanying drawings in
CROSS REFERENCE TO RELATED which :
APPLICATIONS FIG . 1A shows an example of a payment service network
5 in accordance with some embodiments ;
This application is a continuation under 35 U.S.C. § 120 FIG . 1B shows an example of a payment service network
ofU.S. patent application Ser. No. 16 /011,556 , filed Jun . 18 , in accordance with some embodiments;
2018 , which is a continuation under 35 U.S.C. § 120 of U.S. FIG . 2 illustrates and example payment service in accor
patent application Ser. No. 15 /713,322 , filed Sep. 22 , 2017 , dance with some embodiments ;
which claims the benefit under 35 U.S.C. $ 119(e ) of U.S. 10 FIG . 3 illustrates and examplemobile device and payment
Provisional Application No. 62/ 537,395 filed on Jul. 26 , application in accordance with some embodiments ;
FIG . 4A illustrates an example method of paying a
2017 , all of which are expressly incorporated by reference
herein in their entirety . merchant using a virtual currency in accordance with some
embodiments;
TECHNICAL FIELD 15 FIG . 4B illustrates an example method of paying a
merchant using a virtual currency in accordance with some
The present technology pertains to technologies for embodiments ;
accepting virtual currencies in a point of sale transaction . FIG . 5 illustrates an example method of paying a mer
chant using a virtual currency in accordance with some
BACKGROUND 20 embodiments ;
FIG . 6 illustrates and example payment service in accor
Virtual currencies and especially cryptocurrencies such as dance with some embodiments ;
bitcoin , ethereum (ether ), litecoin , etc. have been increasing FIG . 7A illustrates an example method of paying a
in popularity in recent years . Holders of bitcoin and other merchant using a virtual currency in accordance with some
cryptocurrencies are not tied to any government, are decen- 25 embodiments ;
tralized , and allow direct transactions, while still maintain FIG . 7B illustrates an example method of paying a
ing the trust and stability of fiat currencies. Bitcoin in merchant using a virtual currency in accordance with some
particular appears to be more than a passing fad and with embodiments ;
billions in total value in distribution , bitcoin stores signifi FIG . 8 illustrates example graphical user interfaces in
cant economic potential. 30 accordance with some embodiments ;
However, despite the popularity of cryptocurrencies to FIG . 9 illustrates example graphical user interfaces in
date, all cryptocurrencies face the same drawback in that accordance with some embodiments;
they are not widely accepted . Presently , cryptocurrencies, FIG . 10A and FIG . 10B and FIG . 10C illustrates example
like bitcoin , are not accepted by most retail merchants, or graphical user interfaces in accordance with some embodi
even by most online merchants. The lack ofmass adoption 35 ments ; and
of cryptocurrencies thus far may be attributed to a number FIG . 11 shows an example of a system for implementing
of different factors. For one, cryptocurrencies are known to certain aspects of the present technology .
be associated with long transaction times. There is lots of
research and development attempting to increase the speed DETAILED DESCRIPTION
of such transactions, but only with small improvements to 40
date to such an extent that the processing time remains Various examples of the present technology are discussed
impractically large. For example, it is not practical for a in detail below . While specific implementations are dis
coffee shop to sell a coffee in a transaction that could take cussed , it should be understood that this is done for illus
hours before the transaction is confirmed by recording the tration purposes only. A person skilled in the relevant art will
transaction to the blockchain . A further deterrent to accept- 45 recognize that other components and configurationsmay be
ing cryptocurrencies by merchants is that cryptocurrencies used without parting from the spirit and scope of the present
are associated with anonymous identities. This feature of technology
digital currency makes it susceptible to money laundering The disclosed technology addresses the need in the art for
activities and exposes merchants to increased chances of a payment service capable of accepting a greater diversity of
transacting with criminals , which may put them in violation 50 currencies including fiat currencies (US dollars, Euro ,
of state and federal laws. Hence , the security of transactions Rupee , etc.), and non - fiat currencies including virtual cur
for merchants is currently poor. As well as these technical rencies including cryptocurrencies (bitcoin , ether , etc.),
problems, there are business related issues to be overcome. commercial paper ( loans, contracts , forms, etc. ), and secu
For example , cryptocurrency exchange rates with fiat cur rities (stocks , bonds, derivatives, etc.), than a traditional
rencies can fluctuate widely , and this may be a risk that 55 payment system in a transaction between a customer and a
business owners don't want to take. merchant, and specifically for a payment service to solve or
ameliorate problems germane to transactions with such
BRIEF DESCRIPTION OF THE DRAWINGS currencies . Specifically, the payment service described
herein can facilitate real-time (or substantially real - time)
The above-recited and other advantages and features of 60 transactions, allowing a customer to pay in any currency of
the present technology will becomeapparent by reference to their choice , while the merchant can receive payment in a
specific implementations illustrated in the appended draw currency of their choice. In some embodiments , the payment
ings . A person of ordinary skill in the art will understand that service can eliminate barriers to transactions common when
these drawings only show some examples of the present using non - fiat currencies, while maintaining the benefits of
technology and would not limit the scope of the present 65 transacting in those non - fiat currencies. For example , when
technology to these examples. Furthermore , the skilled transacting with a virtual currency the payment service can
artisan will appreciate the principles of the present technol eliminate or substantially reduce the risk of transactionswith
US 10,540,639 B2
3 4
criminal parties, and avoid latency common in virtual cur tionality to POS device 105 to enable merchant 102 ( e.g.,
rency transactions, while maintaining the anonymous ben owners , employees, etc.) to accept payments from customers
efits of virtual currency transactions. 104. In some types of businesses, POS device 105 may
Specifically , the present technology permits a first party to correspond to a store or other place of business of the
pay in any currency, while permitting the second party to be 5 merchant, and thus, may be a fixed location that typically
paid in any currency. In this way, the technology provides does not change on a day -to -day basis . In other types of
benefits that remove barriers to transactions that might businesses , however, the location of POS device 105 may
inhibit international commerce , or commerce with certain change from time to time, such as in the case that a merchant
types of currency . operates a food truck , is a street vendor, is a cab driver, etc.,
Additionally, the present technology , through the pres- 10 or has an otherwise mobile business, e.g., in the case of a
ence of a trusted payment service , can increase trust in merchant who sells items at buyer's homes, places of
transactions taking place in multiple currencies. business , and so forth .
Such increased trust can also be an important benefit of As used herein , a merchant may include any business
the present technology when a party to the transaction engaged in the offering of goods or services for acquisition
wishes to remain anonymous to another party in the trans- 15 by customers. Actions attributed to a merchantmay include
action . Anonymity can reduce trust, and in some cases , actions performed by owners , employees, or other agents of
transactions with anonymous parties can even be illegal. The the merchant, and thus no distinction is made herein unless
present technology includes systems and method of over specifically discussed . In addition , as used herein , a cus
coming such data security concerns, especially in crypto tomer may include any entity that acquires goods or services
currency transactions wherein aliases are commonplace . 20 from a merchant, such as by purchasing, renting , leasing,
The present technology further overcomes latency disad borrowing, licensing, or the like. Hereinafter, goods and /or
vantages germane to cryptocurrency transactions. For services offered by merchants may be referred to as items,
example bitcoin transactions can take , on average, 10 min e.g. item 106. Thus, a merchant and a customer may interact
utes to be confirmed . This is far too long for many transac with each other to conduct a transaction in which the
tions. The present technology can process and approve a 25 customer acquires item 106 from merchant 102, and in
cryptocurrency transaction in near real time, i.e., in seconds.return , customer 104 provides payment 112 to merchant 102.
In some embodiments, cryptocurrency transaction approvals As used herein , a transaction may include a financial
can be similar to the amount of time taken to approve a credit transaction for the acquisition of item (s ) that is conducted
card transaction . between customer 104 and merchant 102. For example ,
Throughout this description reference may be made 30 when paying for a transaction , customer 104 can provide the
toward specific currencies such as bitcoin or the United amount that is due to the merchant using cash or other
States dollar . Such references will be understood to be payment instrument 112 ( e.g., a debit card , a credit card , a
merely examples of other currencies of like character. For stored -value or gift card , a heck , through an electronic
example, references to bitcoin should be understood to be payment application on device 103 carried by the customer,
interchangeable for any cryptocurrency, and particularly 35 or the like ). The merchant can interact with POS device 105
cryptocurrencies recorded on a public blockchain . Refer to process the transactions, such as by inputting (e.g. ,
ences to the United States dollar should be understood to be manually, via a magnetic card reader, NFV reader, or an
interchangeable for any fiat currency managed by a central RFID reader, etc.) identifiers associated with payment
authority, such a country (United States, China , etc.), or instrument 112. For example , a payment instrument of the
regional body (European Union , etc.). 40 customer may include a card having one or more magnetic
Some example implementations of the novel payment strips for providing card and customer information when
service ( including servers and server software, merchant swiped in a card reader. In other examples, other types of
devices and software, and client devices and software ) are payment instruments may be used, such as smart cards
described below with reference to the corresponding figures. having a built-in memory chip that is read by the device
However, implementations herein are not limited to the 45 when the card is “ dipped” into the reader, such as chips that
particular examples provided , and may be extended to other comply with the Europay, MasterCard , Visa (EMV ) stan
environments, other system architectures, other types of dard , i.e. EMV cards. In other examples, other types of
merchants, and so forth , as will be apparent to those of skill payment instruments include cards or computing devices
in the art in light of the disclosure herein . that communicate via radiofrequencies such as a radiofre
FIG . 1A illustrates an example environment 100 that 50 quency identification tags , and near field communication
includes merchant 102 that conducts transactions with cus devices , etc.
tomer 104 (or “ user 104 ” ) for items 106 offered by the During the transaction , POS device 105 can determine
merchant 102. FIG . 1 also illustrates a payment service transaction information describing the transaction , such as
system 108 (also referred to as “ payment service” ), coupled the identifier of the payment instrument, an amount of
to merchant point of sale (POS) device 105 and customer 55 payment received from the customer , the item (s) acquired by
device 103 via a network 110 , to authorize payment instru the customer, a time, place and date of the transaction , a
ments of customer 104 . payment network 140 associated with the payment instru
Customer 104 may engage in transactions with merchant ment, an issuing bank of the payment instrument, a name or
102 to obtain items 106. Customer 104 may provide , as user account of the customer, contact information of the
shown at 112, cash or any other kind of payment instruments 60 customer, type of the currency , and so forth . POS device 105
to merchant 102 along with requests for items offered by can send the transaction information to payment service 108
merchant 102 . over network 110 , either substantially contemporaneously
Merchant 102 may utilize POS device 105 for accepting with the conducting of the transaction ( in the case of online
payment from customers 104. POS device 105 may com transactions ) or later when POS device 105 is in the online
prise any sort ofmobile or non -mobile devices that include 65 mode (in the case offline transactions).
instances of a merchant application that executes on the In an offline transaction , POS device 105 may store one
devices. The merchant application may provide POS func or more characteristics associated with the transaction (i.e.,
US 10,540,639 B2
5 6
the transaction information ), such as a cost of the transac rency network 145. Such networks can include for example,
tion , a time of day at which the transaction occurred , a day the Bitcoin network , the Ethereum network , etc. Cryptocur
of the week at which the transaction occurred , a location at rency networks are commonly associated with a network of
which the transaction took place, an item that the customer parties that cryptographically verify and validate transac
obtained , an identity and /or contact information of the 5 tions and record transactions on copies of a distributed
customer , and a payment instrument used in the transaction . ledger commonly called the blockchain . Once a transaction
After conducting an offline transaction with customer 104 , has been validated, cryptocurrency network can approve the
POS device 105 may provide the stored information (or transaction by writing the transaction to the blockchain. The
some subset of it ) to the payment service 108 over the time for such processes to complete can be impractically
network 110. The network 110 may represent any one or 10 long for many applications.
more wired or wireless networks, such as a Wi-Fi network , While FIG . 1 illustrates merchants 102 sending the trans
a cellular network , or the like. In an online transaction , POS action data directly to the paymentservice 108 as part of the
device 105 may send this information to payment service request to authorize the payment instrument, in some
108 over network 110 substantially contemporaneously with instances other entities (e.g. , banks associated with the
the transaction with the customer. 15 merchants or with customer payment instruments ) may
After merchant 102 receives the payment information provide transaction data, such as part of a batched , periodic
from customer 104 , merchant 102 may send respective process.
authorization requests, along with information regarding the While customer profiles 132 may store indications of user
respective transactions, to payment service 108 , as illus preferences, merchant profiles 130 may store information
trated at 114. Payment service 108 may include payment 20 associated with respective ones of the merchants 102. For
processing service 126 , merchant profiles 130 , and customer instance , the merchant profiles 130 may indicate a class of
profiles 132 items offered by respective merchants (e.g., coffee items,
The payment processing service 126 may function to collectibles , apparel, etc. ), a type of business of the merchant
receive the information regarding a transaction from POS (e.g., restaurant, coffee shop , retail store , etc.), a geographi
device 105 of merchant 102 and attempt to authorize the 25 cal location of the merchant, and the like .
payment instrument used to conduct the transaction . Pay In some instances , a computing device associated with the
ment processing service 126 may then send an indication of merchant (e.g., POS device 105 , servers of the merchant,
whether the payment instrument has been approved or etc.) determines when the customer visits physical premises
declined back to POS device 105 , as illustrated at 116 . or a digital presence of the merchant. For instance, the
Generally , when a customer and a merchant enter into an 30 device 103 of the customer 104 may include an application
electronic payment transaction , the transaction is processed (e.g., an application provided by payment service 108 ) that
by electronically transferring funds from a financial account communicates with POS device 105 of merchant 102 via
associated with the cus ner to a financial account associ near- field communication methods (e.g., Bluetooth , etc.).
ated with the merchant. As such , the payment processing Therefore, when the customer visits the physical premises of
service 126 may communicate with one or more computing 35 merchant 102 , for example, POS device 105 may detect the
devices of a payment card network 140 (or “ card payment presence of customer device 103. The POS device may
network ” ), e.g.,MasterCard® , VISA® , over network (s) 110 accordingly determine that the customer is present. In
to conduct financial transactions electronically . Payment another example , one or both of POS device 105 and
processing service 126 can also communicate with one or customer device 103 may share its location ( e.g., GPS
more computing devices of one or more banks, processing/ 40 coordinates) to a common service for determining when the
acquiring services, or the like over the network 110. For devices are located within a threshold proximity of one
example, payment processing service 126 may communicate another, and for mediating a transaction between customer
with an acquiring bank , and /or an issuing bank , and /or a device 103 and POS device 105 .
bank maintaining customer accounts for electronic pay In another example , customer 104 may utilize customer
ments. Payment processing service 126 may also commu- 45 device 103 to “ check in ” at the merchant location , and POS
nicate with , or access customer and merchant accounts device 105 may receive an indication of this check in . When
maintained by payment service 108 . the customer visits a digital presence of merchant 102 ( e.g.,
An acquiring bank may be a registered member of a card a website , etc. ), customer 104 may log in or otherwise
association (e.g., Visa® , MasterCard® ), and may be part of provide information ( e.g., a cookie on the device 103) from
a card payment network 140. An issuing bank may issue 50 which the merchant determines that the customer is at the
credit cards to buyers, and may pay acquiring banks for merchant. Of course, while a few examples are listed , it is
purchases made by cardholders to which the issuing bank to be appreciated that the merchant and /or payment service
has issued a payment card . Accordingly, in some examples, 108 may determine when the customer is present at the
the computing device (s) of an acquiring bank may be merchant in any other number of ways. In each instance ,
included in the card payment network and may communi- 55 after payment service 108 receives an indication that cus
cate with the computing devices of a card -issuing bank to tomer 104 is located at merchant 102 , the payment service
obtain payment. Further , in some examples, the customer 108 may determine whether to send one or more previously
may use a debit card instead of a credit card , in which case , expressed item preferences of the customer to the merchant.
the bank computing device (s) of a bank corresponding to the In addition , customer 104 may desire to receive an
debit card may receive communications regarding a trans- 60 instance of a payments application , such as a mobile wallet
action in which the customer is participating. Additionally , application , from the payment service 108. FIG . 1 illustrates,
there may be computing devices of other financial institu at 118 , that the customer 104 may send payment-application
tions involved in some types of transactions or in alternative requests to payment service 108. In response , at 120 , pay
system architectures, and thus, the foregoing are merely ment service 108 may provide instances of the application
several examples for discussion purposes . 65 back to customer device 103. In addition , payment service
In transactions involving cryptocurrency, payment service 108 may map an identification of the instance of the appli
108 can communicate over network (s ) 110 with cryptocur cation to the customer profile .
US 10,540,639 B2
7 8
According to an implementation of the present subject cryptocurrency in cryptocurrency ledger 204), or by con
matter, the customers and merchants can send and receive ducting a transaction with another user (customer or mer
payments in virtual currencies via the payment service for chant) of the payment service wherein the account receives
purchase of items or a selected set of items. In another incoming currency. When an account is funded by transfer
implementation , the customers send payments in virtual 5 ring cryptocurrency from an external account, this will be
currencies via the payment service , while the payment when an update to the public blockchain is carried out.
service converts a first virtual currency into another virtual Importantly , this update of the public blockchain need not
currency or a fiat currency of merchant's choice .
FIG . 1B illustrates another embodiment of example envi take place at a time critical moment, such as when a
transaction is being processed by a merchant in store. In
ronment 100 except that in FIG . 1B a transaction is between 10 some embodiments customer profile 132 can include pref
a first user 150 operating device 152 , and a second user 154 erences for maintaining balances in cryptocurrency. In such
operating device 156. Devices 152 and 156 can be a com embodiments, payment service 108 can automatically debit
puting device with an application provided by payment fiat currency ledger 206 to increase cryptocurrency ledger
service 108 executing thereon . In some embodiments, the
application can be point of sale application. In some embodi- 15 204 , or a payment card associated with customer profile
ments, the application can be a mobile wallet application . In whenever cryptocurrency balances fall below a stated level.
some embodiments the application can be an application Conversely, in some embodiments , payment service can
provided by a third party capable of accessing at least one automatically credit fiat currency ledger 206 to decrease
payment account. cryptocurrency ledger 204 whenever cryptocurrency bal
FIG . 1B illustrates the broader concept that the present 20 ances rise above a stated level. In some embodiments,
technology contemplates that currency can be sent from any automatic transactions can be further defined by an
party of any character (merchant, user, bank , etc.) to any exchange rate between the cryptocurrency and the fiat
other party of any character using the innovations described urrency such that transactions to buy or sell cryptocurrency
herein . can occur when exchange rates are favorable .
FIG . 2 illustrates an example system architecture that 25 With specific reference to funding a cryptocurrency
allows customer 104 to pay with a virtual currency, espe account, customer 104 may have a balance of cryptocur
cially a cryptocurrency that utilizes a blockchain to record rency stored in third party digital wallet 212 on customer
transactions . FIG . 2 is designed to overcome at least the 104's computing device 103 unrelated to payment service
above identified challenges common in payment transac 108 and customer 104 can transfer all or a portion of the
tions involving virtual currencies. 30 balance of the cryptocurrency stored in third party digital
As introduced with respect to FIG . 1, payment service 108 wallet 212 to payment service 108 as is well known to those
can store customer profile 132. Customer profile 132 can of skill in the art. Such a transaction requires customer 104
include customer data 202 which can include customer to transfer an amount of the virtual currency in a message
identifying information (name, contact information , etc. ), signed by customer 104's private key to an address provided
records of past transactions 205 involving payment service 35 by payment service 108. FIG . 9 illustrates a user interface
108 by customer 104 , information regarding linked accounts screen 624 showing a user entering a third party digital
( credit card information , bank account information , etc.), wallet 212 address associated with the balance of crypto
information regarding services utilized by customer profile currency they would like to transfer into payment service
132 (e.g., the account utilizes a mobile wallet application 108. The transaction is sent to miners to bundle the trans
210 provided by payment service 108 , etc.). 40 action into a block of transactions and to verify the authen
In addition to customer data 202 , customer profile 132 can ticity of the transactions in the block . Once a miner has
also include a ledger for any accounts managed by payment verified the block , the block is written to a public , distributed
service 108 on behalf of customer 104. It will be appreciated blockchain 220 where payment service 108 can then verify
that customers having accounts managed by the payment that the transaction has been confirmed and can credit
service is an aspect of the technology that enables the 45 customer's cryptocurrency ledger 204 with the transferred
technical advantages of increased processing speed and amount.
improved security . As illustrated in FIG . 2, customer profile In some embodiments, payment service 108 can individu
132 includes customer cryptocurrency ledger 204 , and a ally acquire cryptocurrency from a third party source. Pay
customer fiat currency ledger 206 indicating that customer ment service 108 cryptocurrency wallet 215 can be associ
104 utilizes payment service 108 to manage accounts a 50 ated with many different addresses , and can vary addresses
cryptocurrency (such as bitcoin ), and a fiat currency (such as used to acquire cryptocurrency so that its holdings are
US dollars ), respectively . In some embodiments customer represented under a variety of addresses on blockchain 220 .
profile 132 for customer 104 can include ledgers formore or When payment service 108 has its own holdings of crypto
less accounts . It will be appreciated that in some embodi currency, customers, such as customer 104, can acquire
ments the ledgers are logical ledgers , and the actual data can 55 cryptocurrency directly from payment service 108. In some
be represented in a single database . embodiments, payment service can include logic for buying
Each account ledger ( 204 , 206 ) can reflect a positive and selling cryptocurrency in order to maintain a desired
balance when customer 104 funds the accounts . An account level of cryptocurrency . The desired level can be based on a
can be funded by transferring currency in the form associ volume of transactions over a period , balances of collective
ated with the account from an external account (e.g., trans- 60 customerprofiles cryptocurrency ledgers, exchange rates , or
ferring a value of cryptocurrency to payment service and the trends in changing of exchange rates such that the crypto
value is credited as a balance in cryptocurrency ledger 204 ), currency is trending towards gaining or loosing value with
or by purchasing currency in the form associated with the respect to the fiat currency. In all of these scenarios , the
account from the payment service using currency in a buying and selling of cryptocurrency , and therefore the
different form (e.g. , buying a value of cryptocurrency from 65 associated updating of the public ledger is separate from any
payment service 108 using a value of fiat currency reflected customer — merchant transaction, and therefore not neces
in fiat currency ledger 206 , and crediting the value of sarily time-sensitive .
US 10,540,639 B2
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While payment service 108 has credited customer 104's payment application 210 runs on the customer 104's mobile
cryptocurrency ledger 204 , the transferred cryptocurrency device 103. Mobile device 103 can also include other
(data with address provided for receipt of transaction and a e-commerce applications (" requesting applications ") 240
balance of cryptocurrency transferred in transaction ) is that are associated with one ormore merchant systems and
stored in payment service 108's cryptocurrency wallet 215. 5 can be used by the customer to purchase products or
Additionally, while payment service 108 recognizes that services. The requesting applications 240 can also be web
customer 104 retains the value of the transferred cryptocur sites, forums, URLs , application program interfaces (APIs),
rency through crediting customer 104's cryptocurrency led or any source website or application that either hosts a
ger 204, any person that inspects blockchain 220 will see the description of the product or service and /or provides an
cryptocurrency as having been transferred to payment ser- 10 option to buy the product or service, irrespective of whether
vice 108. In some embodiments , payment service 108's it is directly connected to themerchant POS device 105. The
cryptocurrency wallet 215 can be associated with many mobile payment application 210 can also be a website
different addresses. In such embodiments any person that provided by payment service 108 , or any source website or
inspects blockchain 220 may not easily associate all cryp application that provides a portal to send and accept pay
tocurrency stored in cryptocurrency wallet 215 as belonging 15 ments for transactions using payment service 108. The
to the same entity. It is this presence of a private ledger that requesting application 240 and the mobile payment appli
is used for real- time transactions and maintained by the cation 210 can be accessed through a web browser (e.g.,
payment service 108 , combined with updates to the public Chrome or Safari® ) on the mobile device 103 , in one
ledger at other times , that allows for extremely fast trans example . In another example, the requesting application 240
actions using cryptocurrency to be achieved . 20 and the mobile payment application 210 can be software
As addressed above, in some embodiments customer 104 applications downloadable via an application store (e.g.,
can also have other accounts maintained by payment service Google Play Store, etc.). Once accessed or registered into
108. For example customer 104 can also have an account in the applications 240 and 210, the web browser or application
US dollars . Such account can be funded by transferring remembers the credentials for subsequent customer visits
money from bank account 222 at a third party bank to an 25 (for example, through web browser authentication , web
account maintained at payment service 108 as is conven cookies, web history, etc.) allowing the customer to access
tionally known. The transferred money will be reflected in the application without logging -in into an account. The
fiat currency ledger 206 . description herein is with reference to the mobile payment
Customer 104's fiat currency ledger 206 or cryptocur application 210 as an installed application ; however it will
rency ledger 204 can be credited when conducting a trans- 30 be understood that the mobile payment application as an
action with another user (customer or merchant) of the authenticated or unauthenticated application on a web
payment service wherein the account receives incoming browser is within the meaning of the term .
currency . The mobile payment application 210 can include an
Additionally , customer 104 may also have one or more electronic wallet application , money transfer application
external payment cards registered with payment service 108 35 ( e.g., application for sending and receiving money via email
and recorded in customer data 202. Unlike cryptocurrency or phone ), or any other application having an account
accounts and fiat currency accounts recorded in cryptocur identifier that is linked to one ormore payment cards and /or
rency ledger 204 and fiat currency ledger 206 respectively, bank accounts and can be used by the owner of the mobile
external payment card accounts are not accounts managed device to initiate transactions . Such transactions can include
by payment service 108. Instead , an appropriate external 40 traditional purchase transactions between customers and
payment network 224 processes transactions conducted with merchants or service providers , person-to -person transac
payment cards. tions and the like .
Additionally, customer 104 may also have one or more In some embodiments, mobile payment application 210
internal payment cards registered with payment service 108. can be used to manage internal payment cards ( i.e., payment
Internal payment cards can be linked to all accounts asso- 45 cards issued by payment service 108 to users having a
ciated with customer profile 132. In some embodiments , customer profile 132 ). In some embodiments , options with
options with respect to internal payment cards can be respect to internal payment cards can be adjusted and
adjusted and managed using application 210. For example , managed using application 210. For example , when cus
when customer profile 132 includes multiple payment tomer profile 132 includes multiple payment accounts ( e.g.,
accounts (e.g., cryptocurrency and fiat currency), applica- 50 cryptocurrency and fiat currency ) application 210 can set
tion 210 can set one of those accounts to be the default one of those accounts to be the default account for debits or
account for debits or credits when using an internal payment credits when using an internal payment card as illustrated in
card . FIG . 10C .
Customer 104 can access and monitor customer profile Collectively, all tools for offering payment are herein
132 including payment cards registered with payment ser- 55 referred to as payment instruments . For example payment
vice 108 , cryptocurrency ledger 204 , and fiat currency instruments can refer to mobile device 103 running mobile
ledger 206 through application 210. Application 210 can be payment application 210 , can refer to internal payment
a customer facing application provided by payment service cards, external payment cards, etc. The use of the term
108 , or that is configured to access customer profile 132 payment instrument does not imply a mechanism of use. For
through use of one or more APIs provided by payment 60 example mobile device 103 may be utilized via NFC com
service . munications , or via use of software on mobile device 103 to
In some embodiments , application 210 can provide digital send messages through web forms, applications, APIs , or
wallet functionality including storing payment methods and messaging applications. As an additional example, payment
permitting electronic payments by customer device 103 at cards, whether internal or external, can be presented to a
the instruction of application 210 . 65 merchant to be read , or a card number can be entered into a
FIG . 3 illustrates an example mobile device 103 and terminal under the control of the merchant or under the
payment application 210. In some embodiments, a mobile control of the customer. In some embodiments , a payment
US 10,540,639 B2
11 12
instrument can include multiple payment instruments, for payment service can identify customer profile 132 through
example , such as when utilizing mobile device 103 to enter use of a registered alias , perhaps in combination with other
a payment card number. Throughout this description , spe information .
cific payment instruments may be discussed , however, the Importantly , any information that can be used to identify
specific payment instrument should not be considered lim- 5 customer 104 should be encrypted and not shared with
iting , and persons of ordinary skill in the art will appreciate merchant 102 unless it is an alias. If customer 104 wishes
instances in which a payment instrument such as a payment their identity to be known to merchant 102 , customer 104
card can be substituted for another payment instrument such way can provide their actual name as their alias (307 ). In this
as a mobile device , and vice versa . , customer 104 can take advantage of the anonymity that
FIG . 4 illustrates an example method of using application 10 merchants
is common in cryptocurrency transactions.At the same time,
210 to pay merchant 102 at its POS device 105. The point a legitimatecanparty have confidence that they are transacting with
of sale transaction can be initiated by customer 104 inter 108 has sufficientlysince they can trust that payment service
vetted and identified the customer.
acting with a merchant 102 directly, by customer 104 using POS device 105 can receive the declaration of payment by
customer device 103 to remotely start a tab with merchant 15 cryptocurrency along with the other data described above,
102 through communication with payment service 108 , by but merchant 102, may not wish to receive payment in
customer 104 interacting directly with POS device 105 , or cryptocurrency . Merchant profile 130 might not be associ
by another other known mechanism . Regardless of the ated with a cryptocurrency account, or even if the merchant
mechanism of initiating the point of sale transaction , POS does have a cryptocurrency account within payment service
device 105 can receive (302 ) an identification of items for 20 108, merchant profile might indicate that it wants all POS
purchase and can calculate or receive a value owed in any transactions conducted in US dollars, and would like depos
monetary currency selected by the merchant in this its into merchant fiat currency ledger 208 .
example US Dollars . In some embodiments, rather than using mobile device
Merchant 102 or POS device 105 can prompt customer 103 to provide payment information , customer can present
104 to make payment for the items in the amount of the 25 Point
an internal payment card linked to a cryptocurrency account.
of sale device 105 can utilize the card information to
value owed . Customer 104 can operate payment application
210 on customer device 103 , which presents ( 304 ) payment communicate with payment service 108 to learn that the
options. Payment application 210 can receive a selection customer desires to pay using cryptocurrency .
In some embodiments, rather than mobile device 103
( 306 ) by customer 104 of a cryptocurrency as the payment 30 communicating
option . directly with POS device 105 via NFC ,
Bluetooth , or Local
In some embodiments , payment application 210 can also a message to POS device Area Network , mobile device can send
provide an option to select ( 307) an alias from a list of through an intermediary. Such over a Wide Area Network or
message can take any form ,
previously used aliases or to provide an alias to be used in including a text message that identifies
conducting the transaction . In some embodiments , the alias 35 alias , and declares a desire to pay usingthecryptocurrency
customer via an
.
can be a machine -readable code, such as a QR code, thatcan The merchant can choose which currency they would like
be used to identify the customer. to receive deposits in . The merchant POS 105 user interface
In some embodiments, the alias is registered as part of can provide the merchant options: 1 ) auto -convert the cryp
customer profile 132 such that the customer profile can be tocurrency to USD or 2 ) invest in the cryptocurrency. If the
identified from the alias, or the alias in combination with 40 second option is chosen and the merchant does not have a
another item of information such as a customer device cryptocurrency wallet, payment service 108 will auto -create
identifying attribute . In some embodiments , the alias can be cryptocurrency ledger 207 for the merchant. In some
conceived and used for the first time in a given transaction . embodiments, this user interface can be bypassed when
In some embodiments, an alias can be reused for a specific merchant 130 specifies thatmerchant 102 is not interested in
merchant, unless the customer selects to provide a new alias 45 receiving virtual currency. In some embodiments, this user
to that merchant. interface can be bypassed when a tag (described below )
In some embodiments, the alias can be sent in the clear, associated with the transaction specifies rules for the trans
meaning , not encrypted , so that the merchant can utilize the action .
alias as a mechanism to identify the transaction or the In the embodiments illustrated in FIG . 4A and FIG . 5
customer. However, any account information , or other cus- 50 merchant 102 has selected to auto -convert the cryptocur
tomer identifying information would be encrypted so as to rency to US dollars. Accordingly , merchant 102's POS
not be provided to the merchant and protect the anonymity device 105 transmits (310 ) transaction details including the
of the user. value owed by customer 104 in US dollars, along with the
Payment application 210 can instruct customer device 103 information received from client device 103 (at step 308 ), to
hardware to communicate ( 308 ) information declaring that 55 payment service 108 .
customer 104 would like to pay utilizing cryptocurrency , Payment service 108 receives the transaction details and
customer 104 alias, and encrypted customer profile infor encrypted cryptocurrency payment information , and calcu
mation . The encrypted customer profile information can lates (312 ) a value in cryptocurrency using an exchange rate
include at least some data useable by payment service 108 between the cryptocurrency and the fiat currency (US Dol
to identify customer profile 132. In some embodiments , this 60 lars in this example ) sufficient to cover the value owed to
data can include a user name and password . In some merchant 102. In some embodiments , payment service 108
embodiments, this data can include an account number and can also add a transaction fee on top of the transaction to be
a PIN (or other verification of identity ). In some embodi paid to payment service 108.
ments , verification of identity can be performed by customer Payment service can then debit cryptocurrency ledger 204
device 103 through biometric authentication or other means , 65 for the value calculated at step 312 and credit payment
and confirmation of identity through a password or PIN does service 108's cryptocurrency ledger 219 with the same
not need to be passed to the server. In some embodiments, value .
US 10,540,639 B2
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Since this transaction is an inter -network transaction FIG . 4B is similar to FIG . 4A in many respects , except
(within payment service 108 ) the transaction does not need that the POS system 105 calculates a value owed in cryp
to be transmitted to blockchain 220. Blockchain 220 con tocurrency (332 ). In some embodiments , POS system 105
tinues to reflect that payment service 108 is the holder of the might not calculate a value owned in cryptocurrency until it
cryptocurrency, and this remains true. Only the obligations 5 has learned that device 103 has indicated it wishes to pay in
between payment service 108 and customer 104 have cryptocurrency.
changed . Since the transaction does not need to be recorded POS device 105 can transmit (310 ) the transaction details
on blockchain 220 the transaction can be completed imme including the value owed in cryptocurrency . Just as in FIG .
diately without waiting on confirmation of the transaction 10 4A , payment service 108 can debit (314 ) cryptocurrency
from blockchain 220. Transaction processing speed is there ledger 204 ofcustomer profile 132 and credit cryptocurrency
fore increased . Furthermore, by only updating the block ledger 219 of payment service 108 .
chain 220 when cryptocurrency is bought or sold outside of Payment service 108 can then debit (334 ) payment service
the payment service 108 , the amount of data transmitted to 108 cryptocurrency ledger 219 and credit merchant profile
and from the blockchain 220 is reduced , therefore increasing 15 130 cryptocurrency ledger 207 , and can complete the trans
the available bandwidth of the system (s ) managing the action as addressed with respect to steps 318 and 320 of FIG .
public ledger. In addition , as cryptocurrency transactions 4A .
increase in number, the processing demands on the public In FIG . 4B , the transaction is still conducted in multiple
ledger need not increase proportionally as the bulk of the parts so as to increase the speed of the transaction . While it
transactions are in fact carried out within the payment 20 would be possible for customer 104 to pay merchant 102 in
service 108 . a direct cryptocurrency transfer, such transfer would require
Additionally, the present transaction is actually more confirmation of the transaction on public blockchain 220,
anonymous than a normal transaction on blockchain 220 which can take too long for a typical merchant-customer
since in a normal blockchain transaction it is at least possible transaction .
to follow transactions flowing from one address to another. 25 FIG . 5 illustrates an embodiment of the present technol
It is true that the identity of the user can be anonymous on ogy wherein customer device 103 and POS device 105
blockchain 220 , but it is possible to track the flow of the communicate with payment service 108 , and does not com
cryptocurrency. However, the presenttechnology both keeps municate directly with each other.
the identity of the customer anonymous to those that the In FIG . 5 customer device selects (402 ) merchant using
customer transacts with , but it is also not possible to track 30 application 210 , and receives an input of an alias (404 ). In
the flow of the cryptocurrency by public parties. some embodiments, customer device 103 can also browse a
In addition to debiting customer 104's cryptocurrency webpage of merchant 102 and facilitate selection of items
ledger 204, payment service 108 also debits ( 314 ) its own for purchase from merchant. This information is sent to
cash ledger ( in US Dollars ) and in turn credits merchant payment service 108. Payment service 108 can communi
102's fiat currency ledger 108 with the value owed . In some 35 cate (406 ) customer 104's alias to POS device 105 where it
embodiments , payment service 108 may take a transaction is displayed for selection by merchant 102 when merchant is
fee out of the value owed . ready to conduct a transaction with customer 104 .
While payment service 108 ledgers (cash ledger 217 , In some embodiments , the alias can be a machine-read
cryptocurrency ledger 219 ) reflect two different transac able code , such as a QR code , that can be used to identify the
tions one with customer 104 and one with merchant 102 40 customer. In such embodiments, the alias may also include
from the perspective of customer 104 and merchant 102 only a human comprehensible portion .
one transaction has taken place . Accordingly, payment ser In some embodiments ,mobile device can send a message
vice 108 can record (318 ) the transaction between customer to POS device over a wide Area Network or through an
104 and merchant 102 in merchant and customer transaction intermediary. Such message can take any form , including a
log 205 , and in merchant transaction log 209. The transac- 45 text message that identifies the customer via an alias , and
tion as recorded in at least the merchant transaction log 209 declares a desire to pay using cryptocurrency . For example ,
only identifies customer 104 by their alias. payment service 108 may support tagging ofmessages in
Payment service 108 can then send a transaction confir such a way that themessage itself becomes an instruction to
mation to POS device 105 . carry out a transaction as addressed in more detail below .
While some transactions described herein occur in mul- 50 POS device 105 receives a selection (408 ) of customer
tiple parts (e.g., transaction between customer and merchant 104’s alias, and also receives (410 ) items for purchase and
can be broken into a transaction between customer and calculates a value owed in a currency . POS device 105 sends
payment service and a transaction between payment service this transaction information to payment service 108 , which
and merchant ) such transactions should not be viewed transmits at least a portion of the transaction information to
similarly to other known multi -part transactions such as 55 customer device 103 .
escrow and guaranties, both of which require additional After receipt of transaction information , customer device
aspects ( escrow requires proof of performance before 103 presents (412 ) payment options, and receives a selection
release of funds ) ( guaranties regard contractual obligations (414 ) of a cryptocurrency payment option and sends an
to provide guaranties ). Rather , the multi-part transactions instruction to payment merchant 102 using the selected
described herein are provided , in part, due to the unique 60 payment option to payment service 108. In some embodi
architecture of the present technology , and improvements in ments customer device 103 may need to send authentication
payment networks to provide the described and apparent information or a PIN to conduct the transaction . In some
benefits . embodiments, authentication is not sent to the payment
FIG . 4B illustrates an embodiment of the present tech service and is instead left to application 210 to authenticate
nology wherein merchant 102 through POS device 105 65 a user to instruct that a payment be made .
wishes to be paid in cryptocurrency and customer 104 Once payment service receives the instruction to pay
through device 103 desires to pay in cryptocurrency. merchant 102 , payment service can complete the transaction
US 10,540,639 B2
15 16
in the same manner as described with respect to steps 312, tocurrency transferred, and can be used to verify ownership
314 , 316 , 318 , and 320 described with respect to FIG . 4 of cryptocurrency tokens to be transferred .
above . In some embodiments, payment service 108 can record
As noted above , conducting transactions with an transactions taking place within payment service 108 involv
unknown party can increase a variety of risks, including 5 ing cryptocurrency until the number of transactions has
risks of violating various laws. As such , while merchants exceeded a determined limit ( limit could be a number of
transactions, storage space allocation for a number of trans
102 or users 150 may conduct transitions with a party
identifying themselves with only an alias, payment service actions reached
, or any other limit, etc.). Once the limit has been
payment service 108 can publish the transactions in
108 reduces the risks associated with such transactions .
Payment service 108 can require a customer profile 132 to 10 miners
private canblockchain
verify the230transactions
to public andblockchain
record the220transac
where
be established before processing any transaction where a tions in blocks on public blockchain 220 .
party wishes to only be identified by an alias. Creation of
customer profile 132 can be subject to background checks, pate as a miner at least forpayment
In some embodiments
its
service 108 can partici
transactions to be posed to
or other verifications of identity. For example, one or more 15 public blockchain 220 .
government issued ID numbers may be required to create a With specific reference to funding a cryptocurrency
customer profile that is usable with aliases. Since payment account in a system such as illustrated in FIG . 6 , customer
service 108 has verified the identity of those parties wishing 104 may have a balance of cryptocurrency stored in third
to conduct transactions using an alias, while merchants 102 party digital wallet 212 on customer 104's computing device
or users 150 can safely conduct such transactions . 20 103 unrelated to payment service 108 and customer 104 can
While the figures and description provided herein may transfer all or a portion of the balance of the cryptocurrency
make reference to singular nouns, e.g., an account, a mer stored in third party digital wallet 212 to payment service
chant, a POS device , a customer device , or a customer, it 108 as is well known to those of skill in the art. Such a
should be appreciated that such references are not limited to transaction requires customer 104 to transfer an amount of
the singular form of such nouns. Rather such references will 25 the virtual currency in a message signed by customer 104's
be appreciated by those of ordinary skill in the art to refer to private key to an address of cryptocurrency wallet 235
one of a plurality of such singular nouns, e.g., one of a within payment service 108. Thereafter the transferred
plurality of accounts, merchants , POS devices, customer amount of cryptocurrency is within customer 104's crypto
devices, or customers , etc. currency wallet 235 for use in later transactions. Note that in
While in some embodiments, the present disclosure refers 30 this transaction , the cryptocurrency remains in a wallet of
to crediting or debiting a ledger with a value . It will be customer 104 as opposed to a walletof payment service 108 .
appreciated that in some embodiments that the actual value FIG . 7A illustrates an example method embodiment of
that is credited or debited may actually be slightly greater or conducting a cryptocurrency transaction mediated by pay
less than the stated value to account for transaction fees or ment service 108 as illustrated in FIG . 6 (with private
exchange rates, etc.
While reference has been made to merchant 102 or POS
35 blockchain ). The method can begin by carrying out steps
302 , 304 , 306 , and 307 from FIG . 5 .
device 105, persons of ordinary skill in the art will appre At step 502 customer device 103 communicates to POS
ciate thatmerchant 102 can be easily substituted for another device 105 a declaration that customer device 103 will pay
customer 103 where a first customer 103 could send cur in cryptocurrency . After receiving this message, POS device
rency to another customer 103. As such references to mer- 40 105 can display 504 an option to merchant 102 whether they
chant 102 or POS device 105 receiving currency in a would like to receive payment in the cryptocurrency or in
transaction should notbe considered limited to such entities . another currency such as a fiat currency.As addressed above ,
Rather such entities are merely an illustrative embodiment in some embodiments this option might not be displayed
and any type of entity can be substituted for merchant 102 such as when merchant profile 130 includes a declared
or POS device 105 as the entity receiving currency in a 45 preference for how to handle such options .
transaction . When merchant 102 selects and POS device 105 receives
In some embodiments the merchants referred to herein the selection 506 to receive payment in cryptocurrency , POS
may have a merchant profile 130 with payment service 108 device 105 can send 508 address of cryptocurrency wallet
as described above, or may be external to the payment 237 and other transaction details such as value owed to
service 108. When merchants are not registered with pay- 50 customer device 103. Customer device 103 can then send
ment service 108 , it can be assumed that these merchants 510 a message signed by its private key including its wallet
desire to transact in the fiat currency of their jurisdiction . 235 address, identify the cryptocurrency, and a value to be
Customers registered with payment service 103 can pay in transferred to merchantwallet 237 to payment service 108 .
any currency associated with their account as described Payment service 108 can complete the transaction by
herein . 55 reducing 512 the cryptocurrency balance in customer 104's
FIG . 6 illustrates an example system embodiment wherein wallet 235 and increasing 512 cryptocurrency balance in
payment service 108 includes private blockchain 230 for merchant 102's wallet 237. This can be carried out in
recording and validating cryptocurrency transactions. FIG . 6 methods commonly known in cryptocurrency transactions.
is similar to FIG . 2 in most respects. However, the system In addition to recording the transaction in cryptocurrency
illustrated in FIG . 6 does not include cryptocurrency ledger 60 wallets 235 and 237 the transaction can be recorded in
219 , customer 104's cryptocurrency ledger 204 has been private blockchain 230 and the transaction can be confirmed
replaced by customer 104's cryptocurrency wallet 235 , 320 .
merchant 102's cryptocurrency ledger 235 has been replaced In some embodiments the transaction described in FIG .
by merchant 102's cryptocurrency wallet 237 and payment 7A can be performed in multiple parts . Instead of sending a
service 108 includes private blockchain 230 . 65 message via payment service 108 from customer profile 132
Private blockchain 230 can function to record sender cryptocurrency wallet 235 to merchant profile 130 crypto
addresses, recipient addresses, public keys, values of cryp currency wallet 237 , the transaction could also be modified
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so that both the customer and the merchant transact directly and employees, etc. As such , persons of ordinary skill in the
with payment service 108. For example, cryptocurrency art will recognize the parties, at a fundamental level, to be
wallet 235 could send a message to transfer cryptocurrency a transferring party and a receiving party.
to cryptocurrency wallet 215 of payment service 108. There In some embodiments, by virtue of having multiple cur
after, cryptocurrency wallet can send a message to transfer 5 rencies associated with customer profile 132, payment ser
cryptocurrency to cryptocurrency wallet 237 of merchant vice can be configured to utilize the currency most favorable
profile 130. Such a transaction can also have similar speed to the customer. For example, if a customer were to be in a
benefits. Since both merchant and customer are transacting foreign country and a merchant were to require payment in
directly with payment service 108 , there is increased con a currency for which the customer does not have an account
fidence that the transactions are legitimate , and therefore the 10 balance , payment service can select which of the payment
transfers can be immediately registered , e.g. in near real accounts that are associated with customer profile 132 that
time. These transactions can be recorded first to private has the most favorable exchange rate for the customer.
blockchain 230 or directly to public blockchain 220. While FIGS. 8 , 9 , 10A and 10B illustrate example user interfaces
public blockchain might still take minutes or an hour to of application 210 useful in transferring cryptocurrency into
record the transaction to the blockchain , merchant profile 15 or out of payment service 108 , managing , and spending
130 and customer profile 132 can reflect the changed bal cryptocurrency
ance in advance of the recording on public blockchain 220 . FIG . 8 illustrates several account overview pages 602,
In such a transaction , payment service 108 bears the theo 604 , 606. Page 602 illustrates a total amount available ( i.e.,
retical risk of a double spending of the cryptocurrency . The $ 380 ) associated with customer profile 132. Page 604 illus
risk is negligent though since payment service 108 has 20 trates a breakdown of separate accounts within payment
visibility into cryptocurrency wallet 235 transactions . service 108. Specifically page 604 illustrates account break
In some embodiments one or more steps of the method down summary 610 showing that the $ 380 balance associ
illustrated in FIG . 7A might not be necessary. For example ated with customer profile is comprised of holdings of $ 240
some communications with payment service 108 can be USD , and $ 140 USD value of bitcoin . Page 604 also
avoided and the transaction can be conducted as a more 25 provides market details 612 of customer profile 132’s hold
traditional peer- to -peer transaction common in cryptocur ings in bitcoin . Market details show a change in market
rency transfers. value of bitcoin for the period ( i.e. 1.2 % ), total holdings in
The method illustrated in FIG . 7A has advantages over bitcoin ( customer profile 132 holds 0.015 bitcoin ), and the
traditional cryptocurrency transactions since payment ser value in USD of a bitcoin ( i.e., $ 908.91 ). Page 614 illustrates
vice 108 manages both wallets 235 , 237, and private block- 30 a view of cash holdings as well as provides selectable icons
chain 230. As such the transaction does not need to wait for 614 for selecting loyalty cards stored in association with
confirmation from public blockchain 220 , which can take an customer profile 132 .
unreasonable amount of time for many transactions. Instead All three views 602 , 604, 606 , illustrate payment card 608
payment service 108 can quickly verify that the transfer is associated with customer profile 132. In some embodiments
legitimate and complete the transaction . 35 card 608 is a virtual card that permits transactions using the
FIG . 7B illustrates an example method embodiment of virtual card number. In some embodiments , payment card
conducting a cryptocurrency transaction mediated by pay 608 is an illustration of an actual card issued to customer 104
ment service 108 as illustrated in FIG . 6 (with private that is linked to customer profile 132 .
blockchain ). The method can begin by carrying out steps FIG . 9 illustrates several views of a virtual currency
302 , 304 , 306 , 307 and 308 from FIG . 5 . 40 wallet. View 620 illustrates a view of a bitcoin wallet
After receiving message 308 ( that customer 104 is paying showing the amountof bitcoin stored in the wallet. View 622
by cryptocurrency and encrypted account information ), POS illustrates a selectable user interface element to " add a
device 105 can display 504 an option to merchant 102 bitcoin wallet ” to customer profile 132. View 624 illustrates
whether they would like to receive payment in the crypto a view that follows a selection of the “ add bitcoin wallet”
currency or in another currency such as a fiat currency. As 45 user interface element in view 622. In view 624 customer
addressed above, in some embodiments this option might 104 can input an address of an external wallet that contains
notbe displayed such as when merchant profile 130 includes bitcoin so that bitcoin can be transferred to /from either
a declared preference for how to handle such options . cryptocurrency wallet 215 ( FIG . 2 and FIG . 6 ) or crypto
When merchant 102 selects and POS device receives 530 currency wallet 235 (FIG . 6 ) (depending on system configu
selection of payment option to receive payment in a fiat 50 ration , see e.g., FIG . 2 and FIG . 6 ).
currency POS device 105 can then proceed as in step 310 of FIG . 10A and FIG . 10B illustrate example virtual cur
FIG . 5 , wherein POS device communicates a value owed in rency investment screens . For example view 630 illustrates
fiat currency and the encrypted payment information a graph of bitcoin pricing changes throughout a day along
received from customer device 103 to payment service 108 . with a current value in USD 633 of customer 104's holding
Payment service 108 can calculate an amount owed in the 55 in bitcoin , and bitcoin data 631 showing the percentage
cryptocurrency as in step 312 of FIG . 5. Payment service change in price for bitcoin over the period shown (1.42% for
108 can then conduct a cryptocurrency transaction between the day ), currency number ofbitcoins held by customer 104
customer cryptocurrency wallet 235 and payment service ( 3.15 ), and the value in USD of each bitcoin ( $ 2,300 ).
cryptocurrency wallet 215 and record the transaction on Additionally , view 630 provides selectable options to buy
private blockchain 230. Thereafter the method can complete 60 637 or sell 635 bitcoin .
in the same manner as described with respect to steps 316 , Views 632 and 634 result from a respective selection of
318 , and 320 as described with respect to FIG . 5 . buy 637 and sell 635 options in view 630. View 632 provides
While the embodiments addressed above are primarily a user interface for buying bitcoin , and view 634 provides a
directed to transactions between a merchant and a customer, user interface for selling bitcoin . Both views 632 and 634
it will be appreciated that the principles addressed above are 65 show a value in USD 639 of the bitcoin to be bought or sold ,
applicable to transactions between any two parties transfer and show the number of bitcoins 641 to be bought or sold .
ring currency , included transfers between peers , employers The value of bitcoins to be bought or sold can be adjusted
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using slider 640. In someembodiments, the maximum value actions. For example , in some embodiments , payment ser
of slider can be configured to be the maximum funds in vice 108 can monitor location of client device 103 to
another account (e.g., fiat currency account) associated with determine that it is within merchant 102's store , and that
the user account of the payment system . merchant 102 does not accept cryptocurrency . Payment
View 636 illustrates a screen showing confirmation of a 5 service could preemptively cash out a portion of cryptocur
successful purchase of bitcoin using $ 50 USD to acquire rency so that customer 104 can pay merchant 102 directly
0.0217 bitcoin . with fiat currency.
View 638 illustrates a screen showing multiple crypto In some embodiments, the transaction can appear to
currency wallets . Customer profile 132 is associated with customer 102 as if they paid with cryptocurrency as
holdings of bitcoin 643 and holdings of ether 645. Either 10 addressed above, even though the transaction actually
holding can be selected and detailed views regarding those occurred in two parts (conversion of cryptocurrency to fiat
holdings including research , and buying and selling these currency, and payment in fiat currency ).
cryptocurrencies will be available . While many of the user While above embodiments have been discussed with
interface screens addressed with respect to FIGS. 8 , 9 , 10A , respect to buying and selling a cryptocurrency with or to
and 10B have illustrated actions or research with respect to 15 cash , it should be appreciated that cryptocurrency can also
bitcoin , it will be appreciated that similar screens are also be converted to /from other currencies including securities.
provided for other cryptocurrencies such as ether. As will be appreciated by those of skill in the art , in some
In some embodiments holdings in cryptocurrencies or embodiments it may be possible for payment service 108 to
other non -fiat currencies can be subject to customer 104 accrue a large amount of cryptocurrency in cryptocurrency
defined rules as illustrated in FIG . 10C . For example , rules 20 wallet 215. In some embodiments , large amounts of cryp
can designate a maximum holding 645 in any non -fiat tocurrency can create a risk for payment service 108 due to
currency , and when any holding reaches the maximum , volatility in cryptocurrency value and other factors . Accord
payment service 108 can automatically sell a portion of ingly, payment service 108 can include a risk threshold
those holdings to keep the holdings below the maximum calculation and manage its holdings according to such
stated amount. Similarly rules can be set to keep holdings of 25 threshold . When the amount of a cryptocurrency ( or other
specified non - fiat currencies above a minimum amount of non - fiat currency) triggers a risk threshold , in someembodi
holdings . ments , payment service 108 can automatically cash out of its
Rules can be based on any definable factor including positions in the non - fiat currency. In some embodiments,
maximum , minimums, price of conversion , change in value , payment service can slow its processing of transactions in
etc. Rules can also be set to meet goals such as “ when 30 the non- fiat currency as well . This may give more time for
bitcoin holdings equal $ 100 USD donate holdings to XYZ offsetting transactions that reduce payments service 108's
charity .” holdings in the non - fiat currency . By the payment service
When customer 104 has more than one currency ledger 108 only cashing out when a risk threshold is reached , the
associated with customer profile 132, application 210 can payment service 108 minimizes its demands on the process
also include options to designate a currency as the default 35 ing and bandwidth requirements of external systems.
currency for transactions 647 . In some embodiments , payment service 108 may support
In some embodiments application 210 can also provide an tagging of messages in such a way that the message itself
option to allow transactions to be funded by combining becomes an instruction to carry out a transaction . As used
different currencies 649, for example if the default account here , the term “ tagging” refers to a marking of an alphanu
was underfunded . In some embodiments , the combined 40 meric character (or a string of alphanumeric characters (e.g.,
currency could include funds from an account external to a message or statement) to identify it ( i.e., the character or
payment service 108 such as bank account 222 , payment string ) for treatment in a specified way. Briefly described ,
network 224, or external cryptocurrency wallet. tagging enables a sender, who desires to send virtual or fiat
In some embodiments , one or more of the options illus currency to a recipient, to trigger a currency transfer by
trated in FIG . 10C can be automatically selected or adjusted 45 specifying , in any communication message, an amount and
by payment service through communication with applica a recipient using one or more inputs having a particular
tion 210. For example , payment service can observe that a syntax . The syntax includes a currency indicator prefixing
particular currency is preferred , or most recently used and one or more alphanumeric characters . The currency indica
make this a default account. In some embodiments, payment tor operates as the tagging mechanism that indicates to a
service mightset limits on the maximum holdings of bitcoin 50 computer system to treat the inputs as a request from the
based on the volume of transactions associated with cus sender to transfer currency, where detection of the syntax
tomer profile 132 or based on a percentage of total payment (which includes one ormore alphanumeric characters tagged
service 108 holdings in cryptocurrency wallet 215 . by a currency indicator ) triggers a transfer of the currency.
In addition to rules that specify when accounts of cus The currency indicator can correspond to various currencies,
tomer profile 132 should buy into or outof a cryptocurrency , 55 e.g., dollar ($ ), euro ( € ), pound (£ ), rupee () yuan (¥ ), bitcoin
payment service 108 can also employ heuristics or machine (BTC ), Ether (ETH ), etc.
learning techniques to predict when a conversion of curren The tagging technology provides efficient execution of
cies will be needed , and can preemptively make such a financial transactions (e.g., payment transfers) by enabling a
conversion . sender to trigger a currency transfer through the use of the
For example bitcoins can be converted into another cur- 60 syntax in any communication message. In particular, the
rency prior to the transaction based on the relationship sender can specify , in a communication message, an amount
between the customer and the merchant. By looking at the of currency to transfer by including an input having the
customer 104's purchase behavior, customer 104's payment syntax , where the input can include the monetary indicator
instrument of choice, and /or location ( e.g. , geolocation , and one or more numeric characters (e.g., $ 10 ). In some
geofence, beacons, etc. ), the system can predict sale of the 65 instances, the sender can also specify , in the communication
bitcoin at public blockchain 220 or obtain the bitcoin value message , the recipient to whom the sender intends to send
from the local wallet. This will speed up the bitcoin trans themoney by including another inputhaving the syntax . The
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input can include the currency indicator and one or more tions interface 740, which can generally govern and manage
alphabetic and/or numeric characters ( e.g., $ alex or the user input and system output. There is no restriction on
$ alex123). operating on any particular hardware arrangement and there
While a variety of transaction have been disclosed herein fore the basic features here may easily be substituted for
including merchant- customer transactions, user-user trans 5 improved hardware or firmware arrangements as they are
actions, direct transfers between a first party and a second developed .
party, and indirect transfers wherein a first party transfers to Storage device 730 can be a non -volatile memory device
payment service 108 , and then payment service 108 trans and can be a hard disk or other types of computer readable
fers to a second party , it should be appreciated that any media which can store data that are accessible by a com
combination of parties, whethermerchants, customers , users 10 puter, such asmagnetic cassettes, flash memory cards, solid
can participate in direct or indirect transfers addressed state memory devices , digital versatile disks, cartridges,
herein . random access memories (RAMs), read only memory
FIG . 11 shows an example of computing system 500 in (ROM ), and/or some combination of these devices.
which the components of the system are in communication The storage device 730 can include software services,
with each other using connection 705. Computing system 15 servers, services , etc., that when the code that defines such
700 can be for example a computing system of payment software is executed by the processor 710 , it causes the
service 108 , POS device 105 , and /or customer device 103 . system to perform a function . In some embodiments, a
While these devices have some components in common , hardware service that performs a particular function can
such as those illustrated in computing system 500 , it should include the software component stored in a computer- read
be appreciated that each of payment service 108 , POS device 20 able medium in connection with the necessary hardware
105 , and /or customer device 103 are specialized devices components, such as processor 710 , connection 705 , output
configured for their specific purposes. Connection 705 can device 735 , etc., to carry out the function .
be a physical connection via a bus, or a direct connection For clarity of explanation , in some instances the present
into processor 710 , such as in a chipset architecture. Con technology may be presented as including individual func
nection 705 can also be a virtual connection , networked 25 tional blocks including functional blocks comprising
connection , or logical connection . For example , when the devices, device components, steps or routines in a method
computing system 700 is a payment service 108 , the cryp embodied in software , or combinations of hardware and
tocurrency transactions between a customer and a merchant software .
are centrally managed , aggregated and traded at computer Any of the steps , operations, functions, or processes
generated time intervals and as per user preferences . 30 described herein may be performed or implemented by a
In some embodiments computing system 700 is a distrib combination of hardware and software services or services ,
uted system in which the functions described in this disclo alone or in combination with other devices . In some embodi
sure can be distributed within a data er, multiple data ments , a service can be software that resides in memory of
centers, a peer network , etc. In some embodiments, one or a client device and / or one or more servers of a content
more of the described system components represents many 35 management system and perform one or more functions
such components each performing some or all of the func when a processor executes the software associated with the
tion for which the component is described . In some embodi service . In some embodiments , a service is a program , or a
ments , the components can be physical or virtual devices . collection of programs that carry out a specific function . In
Example system 700 includes at least one processing unit some embodiments , a service can be considered a server.
( CPU or processor) 710 and connection 705 that couples 40 Thememory can be a non -transitory or transitory computer
various system components including system memory 715 , readable medium .
such as read only memory (ROM ) and random access In some embodiments the computer-readable storage
memory (RAM ) to processor 710. Computing system 700 devices, mediums, and memories can include a cable or
can include a cache of high -speed memory connected wireless signal containing a bit stream and the like. How
directly with , in close proximity to , or integrated as part of 45 ever, when mentioned , transitory computer-readable storage
processor 710. media are media such as energy, carrier signals, electromag
Processor 710 can include any general purpose processor netic waves , and signals per se .
and a hardware service or software service , such as services Methods according to the above -described examples can
732 , 734 , and 736 stored in storage device 730 , configured be implemented using computer-executable instructions that
to control processor 710 as well as a special-purpose pro- 50 are stored or otherwise available from computer readable
cessor where software instructions are incorporated into the media . Such instructions can comprise, for example , instruc
actual processor design . Processor 710 may essentially be a tions and data which cause or otherwise configure a general
completely self-contained computing system , containing purpose computer , special purpose computer, or special
multiple cores or processors, a bus, memory controller, purpose processing device to perform a certain function or
cache, etc. A multi-core processor may be symmetric or 55 group of functions. Portions of computer resources used can
asymmetric. be accessible over a network . The computer executable
To enable user interaction , computing system 700 instructions may be, for example, binaries, intermediate
includes an input device 745, which can represent any format instructions such as assembly language, firmware , or
number of input mechanisms, such as a microphone for source code. Examples of computer-readable media that
speech , a touch - sensitive screen for gesture or graphical 60 may be used to store instructions, information used, and/ or
input, keyboard ,mouse, motion input, speech , etc. Comput information created during methods according to described
ing system 700 can also include output device 735 , which examples include magnetic or optical disks , solid state
can be one or more of a number of output mechanisms memory devices, flash memory, USB devices provided with
known to those of skill in the art. In some instances , non -volatile memory, networked storage devices, and so on .
multimodal systems can enable a user to provide multiple 65 Devices implementing methods according to these dis
types of input/output to communicate with computing sys closures can comprise hardware, firmware and /or software ,
tem 700. Computing system 700 can include communica and can take any of a variety of form factors . Typical
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examples of such form factors include servers , laptops , currency, and wherein the identifying the indication that the
smart phones, small form factor personal computers, per first user intends to satisfy the request for payment using a
sonal digital assistants , and so on . Functionality described cryptocurrency comprises :
herein also can be embodied in peripherals or add - in cards. determining exchange rates between each of the different
Such functionality can also be implemented on a circuit 5 currencies and the fiat currency, wherein the deter
board among different chips or different processes executing mined exchange rates comprise the exchange rate
in a single device , by way of further example. between the cryptocurrency and the fiat currency ;
The instructions, media for conveying such instructions , determining that the exchange rate between the crypto
computing resources for executing them , and other struc currency and the fiat currency is most favorable for the
tures for supporting such computing resources are means for 10 first user.
providing the functions described in these disclosures . 5. The method of claim 1, wherein the identifying the
Although a variety of examples and other information was indication that the first user intends to satisfy the request for
used to explain aspects within the scope of the appended payment using a cryptocurrency comprises :
claims, no limitation of the claims should be implied based receiving information regarding a payment card linked to
on particular features or arrangements in such examples, as 15 the first balance , wherein the payment card is registered
one of ordinary skill would be able to use these examples to with the payment service ; and
derive a wide variety of implementations . Further and retrieving, based on the information regarding the pay
although some subject matter may have been described in ment card , preference information of the first user.
language specific to examples of structural features and/or 6. The method of claim 5 , wherein the payment card is
method steps , it is to be understood that the subject matter 20 linked to multiple payment accounts of the first user, and
defined in the appended claims is not necessarily limited to wherein the preference information of the first user is stored
these described features or acts. For example , such func in a profile for the first user.
tionality can be distributed differently or performed in 7. The method of claim 1, wherein the initiating a first
components other than those identified herein . Rather, the transfer of a value corresponding to the payment account in
described features and steps are disclosed as examples of 25 the cryptocurrency from a first balance of the first user to one
components of systemsand methods within the scope of the ormore service balances of the payment service comprises :
appended claims. debiting the value in the cryptocurrency from the first
balance; and
What is claimed is : crediting the value in the cryptocurrency to one or more
1. A method of settling a transaction , comprising : 30 of the service balances .
receiving , by a payment service , a request for payment 8. The method of claim 1, wherein the first balance is
associated with the transaction between a first user and associated with a third - party cryptocurrency wallet owned
a second user, wherein the request specifies a payment by the first user, and wherein the initiating a first transfer of
amount in a fiat currency ; a value corresponding to the payment account in the cryp
identifying ,by the payment service , an indication that the 35 tocurrency from a first balance of the first user to one or
first user intends to satisfy the request for payment more service balances of the payment service comprises:
using a cryptocurrency ; initiating a transfer of the value in the cryptocurrency
initiating, by the payment service , a first transfer of a from the third -party cryptocurrency wallet to a crypto
value corresponding to the payment amount in the currency wallet of the paymentservice by recording the
cryptocurrency from a first balance of the first user to 40 transfer on a blockchain associated with the cryptocur
one or more service balances of the payment service, rency .
wherein the first balance is stored in one or more data 9. The method of claim 8 , wherein the second transfer of
structures maintained by the payment service ; and the value in the fiat currency from the one or more service
initiating, by the payment service , a second transfer of a balances of the payment service to the second balance of the
value corresponding to the payment amount in the fiat 45 second user is only initiated after the transfer has been
currency from the one or more service balances of the recorded on the blockchain .
payment service to a second balance of the second user , 10. The method of claim 1, wherein the request for
wherein the second balance is stored in the one ormore payment comprises :
data structures maintained by the payment service . a first identifier corresponding to the first user ; and
2. The method of claim 1, wherein the identifying the 50 a second identifier corresponding to the second user.
indication that the first user intends to satisfy the request for 11. The method of claim 10 , further comprising:
payment using a cryptocurrency comprises: sending, to a computing device associated with the second
sending, to a computing device associated with the first user , a report associated with the transaction , wherein
user, information to display the request for payment the report specifies the first identifier and an amount
with different payment options, wherein the payment 55 paid as the value in the fiat currency without disclosing
options include a fiat currency payment option and a that the payment was made in the cryptocurrency .
cryptocurrency payment option, and 12. A method of settling a transaction , comprising:
receiving , from the computing device associated with the receiving, by a payment service, a request for payment
first user, input selecting the cryptocurrency payment associated with the transaction between a first user and
option . 60 a second user, wherein the request specifies a payment
3. The method of claim 2 , wherein the information to amount in a fiat currency ;
display the request for payment with different payment identifying , by the payment service, an indication that the
options includes information specifying an exchange rate first user intends to satisfy the request for payment
between the cryptocurrency and the fiat currency . using the fiat currency and the second user intends to
4. The method of claim 3 , wherein the first user has 65 receive the payment in a cryptocurrency ;
multiple payment accounts with the payment service , each initiating , by the payment service, a first transfer of a
of the payment accounts being associated with a different value corresponding to the payment amount in the fiat
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currency from a first balance of the first user to one or account in the cryptocurrency from the one or more service
more service balances of the payment service, wherein balances of the payment service to a second balance of the
the first balance is stored in one or more data structures second user comprises:
maintained by the payment service ; and debiting the value in the cryptocurrency from one or more
of the service balances; and
initiating , by the payment service, a second transfer of a 5 crediting
value corresponding to the payment amount in the the value in the cryptocurrency to the second
balance .
cryptocurrency from the one ormore service balances 16. The method of claim 12, wherein the second balance
of the payment service to a second balance of the is associated
second user, wherein the second balance is stored in the 10 by the secondwith user
a third -party cryptocurrency wallet owned
, and wherein initiating a second transfer
one or more data structures maintained by the payment of a value corresponding to the payment account in the
service . cryptocurrency from the one or more service balances of the
13. The method of claim 12 , wherein the identifying the payment service to a second balance of the second user
indication that the first user intends to satisfy the request for comprises :
payment using the fiat currency comprises: initiating a transfer of the value in the cryptocurrency
sending, to a computing device associated with the first
15 from a cryptocurrency wallet of the payment service to
user, information to display the request for payment the third -party cryptocurrency wallet by recording the
with different payment options , wherein the payment transfer on a blockchain associated with the cryptocur
rency.
options include a fiat currency payment option and a 17. The method of claim 12 , wherein the request for
cryptocurrency payment option ; and 20 payment comprises :
receiving, from the computing device associated with the a first identifier corresponding to the first user; and
first user, input selecting the fiat currency payment a second identifier corresponding to the second user.
option . 18. The method of claim 17 , further comprising:
14. The method of claim 13 , wherein the information to sending , to a computing device associated with the first
display the request for payment with different payment 25 user , a report associated with the transaction, wherein
options includes information specifying an exchange rate the report specifies the second identifier and an amount
between the cryptocurrency and the fiat currency . paid as the value in the fiat currency without disclosing
15. The method of claim 12 , wherein the initiating a that the payment was made in the cryptocurrency.
second transfer of a value corresponding to the payment