Fintech Patent: ArentFox Schiff Obtained Patent for Secure Crypto Wallet and Cryptocurrency Payment Protocol | Arent Fox Schiff
The use of cryptocurrencies for online purchases continues to grow in popularity. However, the use of crypto to pay for goods in stores has been slow due to the lack of infrastructure that can support crypto transactions. Tangem AG has obtained a patent for a technology that enables cryptographic transactions on conventional point-of-sale terminals without modifying the existing infrastructure.
Conventional electronic payment systems, such as MasterCard, Visa, and Europay, do not support cryptocurrency transactions in their default state. In other words, a customer cannot simply pay for groceries using cryptocurrency at the local supermarket’s point-of-sale (POS) terminal. To fill this gap, Tangem, a Swiss fintech pioneer, has developed and patented a secure cryptocurrency hardware wallet and associated cryptocurrency transaction authorization protocol compatible with conventional electronic payment systems. Thus, a vendor does not have to purchase a separate POS terminal configured specifically for cryptocurrency transactions.
from Tangem US Patent No. 11,315,113 describes a secure crypto wallet, which can be implemented as a smart card or smartphone application, that stores customers’ private cryptographic keys in crypto funds. The wallet is configured to interact with a conventional point-of-sale terminal using a standard one-click contactless approach or a card-insert contact approach performed with a chip and PIN bank card. The patent also describes a novel blockchain transaction authorization method whereby a POS terminal can obtain a blockchain transaction signature (authorization) from the customer’s hardware crypto wallet and transmit that authorization over a conventional electronic payment network by incorporating necessary data in standard e-mail messages.
One of the main challenges in prosecuting fintech patents is overcoming subject eligibility rejections under 35 USC 101 given the Supreme Court ruling. Alice Corp vs. CLS Bank, which limits the patentability of certain business methods. This challenge can be even greater if your patent application is assigned to USPTO Art Units 3620 or 3680, which review business method patents and are known for their difficulty in prosecuting, with patent grant rates as low as 25% and 30%, respectively. Despite being placed in Art Unit 3680, ArentFox Schiff’s patent attorneys were able to obtain the patent for Tangem, within six months of the filing date, with minimal litigation using well-developed patent drafting strategies, such as a focus on technical aspects and invention improvements. on conventional technical standards.