System and methods for financing merchant business needs

A payment system can determine when a business need for a merchant is expected to occur for a particular time period. The payment system can also determine whether a merchant is eligible for a cash advance for a particular amount, along with a fee for the cash advance. Once a determination is made that the merchant is eligible for the cash advance, the payment system can send the merchant a notification describing the expected business need for the particular time period along with an offer for the cash advance. The merchant can accept the offer for the cash advance by sending an acceptance to the payment system. Upon accepting the offer, the merchant is provided the cash advance for the particular amount, for example, in the form of an electronic deposit in a financial account of the merchant.

BACKGROUND

Individuals and businesses can use inventory management systems to manage their merchandise. These inventory management systems track incoming items, outgoing items, and transfers of items between different storage locations. This information can be used by businesses to keep track of their merchandise and make decisions for when certain items should be restocked.

DETAILED DESCRIPTION

Systems and methods in accordance with various embodiments of the present disclosure overcome one or more of the above-referenced and other deficiencies in conventional approaches to managing inventories for merchants through a payment system that the merchants also use to process financial transactions. In particular, various embodiments of the present disclosure can provide a method for managing a merchant's inventory by tracking the merchant's financial transactions through the payment system. For example, each financial transaction processed by the merchant can provide the payment system with information about items that were sold and their respective quantities. The payment system can be configured to keep track of the merchant's inventory, for example, by adjusting item quantities that are available in the merchant's inventory based on quantities of items that were sold in the financial transactions. If items in the merchant's inventory need to be replenished, the payment system can make recommendations to the merchant accordingly.

Along with this recommendation, the payment system can provide the merchant with one or more offers of cash advances. Whether a merchant qualifies for a financing offer can be based entirely on an evaluation of the merchant's previously conducted financial transactions through the payment system. For example, a determination can be made to offer the merchant a cash advance of $8,000 and an $800 fee for the cash advance being offered. Thus, the merchant would receive a cash advance of $8,000 and would have to pay back the merchant financing system, e.g., the payment system, a total amount of $8,800, i.e., the $8,000 cash advance and the $800 fee. This amount can be collected by the payment system as a fraction of the amounts collected by the merchant from future financial transactions that are conducted through the payment system. To accept the offer, the merchant can select an option, for example, through a financing interface provided by the payment system. Once the offer is accepted, the merchant can be provided the cash advance through an electronic deposit made by the payment system in a financial account of the merchant in a financial institution.

After the cash advance is disbursed, each time the merchant conducts a financial transaction through the payment system, the payment system will deduct a specified percentage, e.g., 10 percent, from the amount charged in the financial transaction. For example, if the merchant conducts a financial transaction in the amount of $50.00, then, while processing the financial transaction, the payment system will automatically deduct $5.00, and apply that amount to the amount owed by the merchant, i.e., $8,800. In other words, at a rate of 10 percent, the merchant will be done repaying the amount owed once the merchant has reached $88,000 in financial transactions conducted through the payment system. In some embodiments, the payment system can be configured to deduct the rate of repayment, e.g., 10 percent, from a group of financial transactions conducted by the merchant through the payment system over a particular period of time, e.g., daily, weekly, bi-weekly, monthly, or yearly.

The approaches described in this specification can allow merchants to easily manage their inventories and the restocking of items in those inventories. Merchants that do not have adequate funds can also obtain financing for replenishing their inventories without having to go through a typical loan application process. Other advantages, variations, and functions are described and suggested below as may be provided in accordance with the various embodiments.

FIG. 1illustrates an example of an environment100for implementing a payment system108that is able to manage merchant inventories. The exemplary environment100includes a payment system108. The payment system108includes an inventory server110, a payment server112, and a financing server114.

Each of the inventory server110, the payment server112, and the financing server114, can be implemented as computer programs on one or more computers in one or more locations, in which the systems, components, and techniques described in this specification can be implemented. The payment server112is configured to process financial transactions between the merchant102and its customers105. These financial transactions can be, for example, card-less payment transactions or transactions performed using financial payment instruments, e.g., credit cards, debit cards, or gift cards, to name some examples. Further operation of the payment system112is described below in reference toFIG. 5. The example environment100also includes a merchant computing device104that can be used to conduct financial transactions, e.g., the merchant device505, as described below in reference toFIG. 5.

The merchant device104can be a computer coupled to the payment system108through a data communication network106, e.g., the Internet. The network106can include any appropriate network, including an intranet, the Internet, a cellular network, a local area network, a wide area network, or any other such network, or combination thereof. Components used for such a system can depend at least in part upon the type of network, the environment selected, or both. Protocols and components for communicating over such a network are well known and will not be discussed herein in detail. The merchant device104and the payment system108can communicate over the network106using wired or wireless connections, and combinations thereof.

A customer105can collect, or request, items that are available for purchase from the merchant102. When the customer105is ready to enter into a financial transaction, the customer105can, for example, approach a point-of-sale for the merchant102. The merchant102can then interact with a merchant application running on the merchant device104to initiate a payment transaction for the items being purchased by the customer105. For example, the merchant102using the merchant application can determine a total amount to bill the customer105for the items being purchased. The customer105can provide a financial payment card or enter into a card-less payment transaction to pay for the amount due.

The merchant102can submit a request for a financial payment transaction for the total amount to the payment system108. When submitting the request, the merchant device104typically sends, to the payment system108, data describing the customer's financial payment data103, e.g., credit card information, along with data describing an itemized listing of products that are being purchased by the customer105including, for example, the items being purchased, respective costs, and respective quantities being purchased. The payment system108can use the financial payment data103to process the financial payment transaction for the total amount to be billed to the customer105.

In some embodiments, the inventory server110is configured to manage the merchant's product inventory. For example, the inventory server110can maintain the merchant's inventory in a database116, as shown in the example view of a merchant inventory database202inFIG. 2The merchant inventory database202can store inventory data204that includes a listing of items that are available for purchase from the merchant, their respective item names and/or descriptions, and respective quantities of the items that are remaining in the merchant's inventory. The inventory server110can track the merchant's inventory based in part on the transaction data103that is received from the merchant device104. For example, when the transaction data103is received, the payment system can evaluate the listing of items being purchased by the customer105and the quantities in which these items are being purchased. The inventory server110can then update the merchant inventory database202to reduce the respective amounts of quantities of the items being purchased by the customer105. The inventory server110can track quantities remaining based on the actual number of items remaining in the merchant's inventory or on a remaining percentage of the quantity the merchant normally has in stock of the item, e.g., “quantity of item #44 is down to 5% of the quantity you normally have of this item.”

In some embodiments, the inventory server110is also configured to manage the merchant's sales data. For example, the inventory server110can maintain the merchant's sales data in the database116, as shown in the example view of the merchant inventory database202inFIG. 2. The merchant inventory database202can store sales data206that includes a listing of items that are available for purchase from the merchant, their respective item names and/or descriptions, respective quantities of the items that were purchased by the merchant's customers105, and respective amounts that were generated from the sales. Thus, for any given time period, e.g., day, week, month, quarter, and year, the inventory server110can keep track of the items that were purchased by the merchant's customers105during that time period and the respective quantities of these purchased items. The inventory server110can track the merchant's sales based in part on the transaction data103that is received from the merchant device104, as described above.

The inventory server110can apply generally known approaches to predictive modeling to the merchant's inventory data204and sales data206to make inventory-based recommendations to the merchant, e.g., send the merchant notifications when an inventory shortage is predicted. For example, predictive modeling can be used to predict when the merchant will run out of a particular item. Inventory shortages can be determined in various ways based on the embodiment.

For example, in some embodiments, inventory recommendations are predicted based in part on the merchant's inventory data. That is, the inventory server110can evaluate respective quantities of items currently in stock at the merchant to determine whether particular items need to be restocked. For example, a particular item may need to be re-stocked because its in-stock quantity is below a threshold quantity.

In some embodiments, inventory recommendations are predicted based in part on the merchant's sales data. For example, the inventory server110can determine, based on the merchant's past sales data for an item, that the merchant sold a certain quantity of the particular item during a time period, e.g., day, week, month, quarter, or year. Based on this information, the inventory server110can provide the merchant with a notification when an item should be replenished and the amount in which the item should be replenished. For example, the inventory system110can notify the merchant that the merchant should have 60,000 units of a particular item in stock for July since the merchant sold 60,000 units of the particular item two years ago in the month of July and sold 60,000 units of the same particular item last year in the month of July.

In some embodiments, inventory recommendations are based in part on the merchant's current inventory and in part on the merchant's sales data. That is, based on the merchant's current inventory of a particular item and on historical sales of the particular item by the merchant, the inventory server110can notify the merchant to replenish the particular item at appropriate times. For example, if the inventory server110determines that the merchant has 50 units of a particular item in stock for the month of November and, based on past sales, the merchant typically sells 250 units of the particular item during the month of November, then the inventory server110can notify the merchant to purchase 200 units of the particular item. Using the merchant's inventory data and sales data, the inventory server110can also provide the merchant with other types of inventory information. For example, based on historical sales of an item and on the current stock of the item, the inventory server110can notify the merchant that the item is going to run out within a certain time period, for example, within 10 days.

In addition to the merchant's current inventory data and the merchant's sales data, the inventory server110can be configured to supplement recommendations based on data obtained from social media. For example, the inventory server110can be configured to utilize Application Programming Interfaces (APIs) to obtain, from social media resources, data describing a number of check-ins at the merchant's location, number of reviews for the merchant, an average rating for the merchant, a number of entities that have identified the merchant as a favorite, to name some examples. This information can be used to determine when the merchant is gaining popularity and, as a result, predict that the merchant will be receiving more customers. This information can then be combined with other sources of information, for example, inventory data and sales data, to provide the merchant with recommendations for replenishing the merchant's inventory.

In some embodiments, the inventory server110can also evaluate lead times associated with replenishing product inventory to make recommendations for when the merchant should replenish the item. For example, the inventory server110can determine that delivery of the item takes, on average, 5 business days. Based on this determination, the inventory server110can notify the merchant when it is time to re-order the item so that it arrives before the merchant's current stock of the item is predicted to be sold out.

In some embodiments, the inventory server110is configured to categorize the merchant into a merchant category that identifies the type of business being run by the merchant, for example, using merchant category codes (MCC). The inventory server110can use this merchant categorization to make recommendations for when the merchant should replenish items. For example, the recommendations can be made based in part on weather forecasts, e.g., recommend stocking up on umbrellas for a predicted rainy season, yearly seasons, e.g., recommend stocking up winter clothes, holidays, and industry trends, e.g., based on some industry index. The inventory server110can also identify opportunities to purchase items at discounted rates, for example, based on a determination that particular vendors are offering items at a discount or by notifying the merchant of off-peak time periods for stocking up on particular items.

In some embodiments, the inventory server110is configured to provide recommendations by comparing the merchant's inventory needs to inventory needs of other merchants that are in the same merchant category. For example, based on the inventory needs of other merchants that have the same merchant category as a particular merchant, the inventory server110can notify the particular merchant that similar merchants typically stock up on certain items during a particular time period or season. One example notification may state “merchants like you at this time of the year typically need 2,000 units of product X, 750 units of product Y, and 350 units of product Z.”

In some embodiments, the inventory server110is configured to interact with a financing server114to also provide the merchant with financing opportunities when providing inventory recommendations. Thus, for example, when the merchant is sent a recommendation to replenish particular items, the inventory server110can also determine an estimated amount of funds that the merchant would need to restock these particular items. The inventory server110can then interact with the financing server114to determine whether the merchant would qualify for a cash advance in the amount of the estimated amount of funds needed to replenish the particular items. If the merchant qualifies, then the payment system108can offer the merchant a cash advance for the amount needed to purchase the particular items, as illustrated in the example view inFIG. 3. In some embodiments, if the merchant qualifies for an amount that is less than the amount needed to purchase the particular items, the payment system108can still provide the merchant with an offer for a cash advance in the lesser amount that the merchant is qualified to receive. Naturally, in some instances, the merchant may qualify for a cash advance that is higher than the amount that would be needed to replenish the particular items. In such instances, the merchant can be offered the entire qualified amount. In some embodiments, the merchant is pre-qualified for a cash advance of a particular amount. In such embodiments, the inventory server110can provide the merchant with an offer for a cash advance in the pre-qualified amount when sending inventory recommendations to the merchant.

The financing server114is configured to determine whether a merchant qualifies for a financing offer, e.g., a cash advance, by evaluating various factors associated with the merchant. Some of these factors can be based, in part, on evaluating financial transactions conducted by the merchant through the payment system112.

The financing server114can determine whether a merchant is eligible for a financing offer, the amount of the cash advance, a fee for the cash advance, e.g., a percentage of the cash advance or a fixed fee, and a rate for repayment for the cash advance and the fee, i.e., a fixed amount or a percentage, to be deducted from financial transactions conducted by the merchant. These determinations can be made, for example, by applying various machine learning techniques, e.g., ensemble learning methods.

In various embodiments, the financial server114utilizes a classifier, for example, using a random forest approach, to determine whether a merchant qualifies for a financing offer. The classifier can be trained using training data that describes, for various merchants, respective payment history, the respective type of business, a respective gross payment volume (GPV) over a particular time period, the growth of the merchant's GPV over a particular time period, e.g., month over month growth, and whether the merchant has a brick-and-mortar store, to name some examples.

To determine whether a particular merchant qualifies for a financing offer, the financing server114can utilize the classifier to determine whether factors describing the merchant qualify the merchant for a cash advance. As mentioned, these factors can be, for example, the merchant's payment history, the type of business, and a GPV over a particular time period, e.g., over the past fiscal quarter or year. The financing server114can also determine the amount of the financing offer, the fee for the financing offer, and the rate of repayment, using similar techniques. For example, the financing server114can apply normal regression analysis on the merchant's previous financial transactions conducted by the merchant through the payment system112to make such determinations. In some embodiments, the fee for the cash advance is based on a specified percentage, e.g., 14 percent, of the cash advance. In some embodiments, the rate of repayment is a specified percentage, e.g., 10 percent. In some embodiments, the rate is determined based on targeting a 10-month repayment model. This model can be determined by forecasting the merchant's GPV for the subsequent year.

Once the financing server114determines that the merchant qualifies for a financing offer, the details of the financing offer can be sent to the merchant. Depending on the implementation, the offer details can be sent to the computing device over a network, e.g., the Internet, through a web-based environment, as described above, or may be sent to the merchant through electronic communication, e.g., by e-mail or a text message.

The merchant can then accept the financing offer, for example, by selecting an accept option, as described below. Once the offer is accepted, the financing server114can instruct the payment system112to disburse funds, to the merchant, in the amount specified in the offer. The payment system112can access various merchant data that describes financial account information, e.g., a routing number for a checking account, for the merchant. In some embodiments, the payment system112electronically deposits the funds in the merchant's financial account with a financial institution118. The merchant can then access the funds directly from their financial account. Other approaches to providing the merchant with the cash advance are possible including, for example, providing the merchant with a financial payment card having a pre-set spending limit in the amount of the cash advance.

The payment system112is configured to process financial transactions between the merchant102and customers105, as described below in reference toFIG. 5. In various embodiments, while processing financial transactions for the merchant102, the payment system112is also configured to deduct a portion of the merchant's earnings from these financial transactions until the amount of financing provided to the merchant, together with the fee for the financing, is collected by the payment system112. The amount deducted from financial transactions can be based on a rate for repayment for the cash advance and the fee, as specified in the terms and conditions, i.e., a fixed amount deducted from each transaction, e.g., $5, or a percentage, e.g., 10 percent, to be deducted from financial transactions conducted by the merchant. As mentioned, these deductions can be performed on a per-transaction basis or from financial transactions conducted by the merchant over a certain time period, e.g., hourly, daily, weekly, bi-weekly, monthly, or yearly.

In some embodiments, the financing server114may determine that the merchant qualifies up to a maximum amount of financing. In such embodiments, the merchant can request an amount of financing that is the same or less than the maximum amount of financing. In some embodiments, the merchant may request an amount of financing that is higher than the amount of financing that the merchant was pre-qualified to receive. In such embodiments, the financing server114, alone or in combination with human feedback, can evaluate the request to determine whether the merchant should receive the requested higher amount of financing.

The financing server114is configured to evaluate respective factors associated with merchants, as described above, to determine whether any of those merchants pre-qualify for respective financing offers. Naturally, the factors for each merchant will vary based on the different types of financial transactions performed by that merchant and the various attributes of the merchant. Thus, the financing server114is able to generate custom financing offers for each merchant. Financing offers for each merchant can be determined automatically without merchants necessarily requesting such offers. Once determined, these offers can be provided to the merchants for replenishing their inventories, as described above, without the merchant having to request the cash advance.

Inventory management is just one example of how the approaches described in this specification can be applied. However, it should be understood that the techniques described herein are applicable to all manner of business expenses including, but not limited to, inventory-related expenses as well as business expenses, e.g., operating expenses, business needs, etc.

FIG. 3illustrates an example view of a merchant point of sale register interface300showing an inventory alert notification306. The interface300is a graphical user interface that can be displayed on a display screen of a merchant device and through a merchant application that is running on the merchant device. For example, the graphical user interface can be displayed on a display screen of the merchant device104, as described in reference toFIG. 1, and through a merchant application that is running on the merchant device104. The interface300may also be accessible to the merchant over the Internet and through a secure Uniform Resource Locator (URL).

The interface300can include a first region302and a second region304. The first region302can include icons that can each reference a product that is available for purchase through the merchant. Each icon can include a corresponding name and cost of the product. The interface300may also be formatted using a merchant logo and a color motif specified by the merchant. The second region304can display an itemized listing of products being purchased by the customer, including, for each purchased product, a respective name, quantity being purchased, and cost.

The merchant can interact with the interface300to process financial transactions between the merchant and customers that are purchasing the merchant's products. These financial transactions can be processed through a payment system, e.g., the payment system108, as described in reference toFIG. 1.

As described above, in addition to processing the merchant's financial transactions, the payment system can also be configured to manage the merchant's product inventory. For example, the payment system can notify the merchant, for example, through a pop-up notification306, when items in the merchant's inventory are low in stock. The notification306can indicate a remaining quantity for the items, a name and/or description of the item, and a predicted demand for the item over a particular time period, e.g., over the next day, week, month, quarter, or year.

In some embodiments, the notification306also includes an offer for a cash advance. The offer for the cash advance can be determined by the payment system108, as described in reference toFIG. 1. For example, when the merchant is sent a notification that particular items are in low supply, the notification can also include an offer for a cash advance for an amount that the merchant is pre-qualified to receive, as described above.

After receiving notification of the offer, the merchant can interact with the merchant device to obtain information about the offer details, for example, by selecting a link307. The offer details can specify terms and conditions for the cash advance. These terms and conditions may specify that the merchant financing system will provide the merchant a cash advance of a particular sum and, in return, the merchant agrees to pay the merchant financing system a fee, e.g., a fixed fee. Details regarding the repayment of the fee can also be provided in the terms and conditions.

In some embodiments, this information includes a maximum amount of financing that the merchant is pre-qualified to receive. This amount can be determined based in part on evaluating the merchant's financial transactions that were processed through the payment system, as described above.

For example, the merchant financing system may determine that the merchant qualifies for a cash advance of up to $8,000. This information can be presented to the merchant through the notification306. In some embodiments, the merchant can simply select the accept option308to receive the entire amount of financing that the merchant is pre-qualified to receive. In some embodiments, the amount of the cash advance is based on an amount the merchant needs to replenish certain inventory items that need restocking. For example, the payment system can determine that the merchant is pre-qualified for a $10,000 cash advance but that the merchant only needs $800 to replenish its inventory. In such instances, the offer for the cash advance can be for $800. Depending on the embodiment, if the merchant accepts the cash advance of $800, then the amount the merchant is pre-qualified to receive can be reduced to $9,200, which is $800 less than the $10,000 amount the merchant was pre-qualified to receive until the merchant repays the paid out cash advance.

In some instances, the merchant may not need the entire amount of financing being offered. Thus, in some embodiments, the merchant can request a specific amount of financing, e.g., $7,500, by selecting an option312to request the different amount. The payment system can evaluate various factors, e.g., the merchant's financial transaction history, to determine whether the merchant qualifies for the requested amount. If approved, the payment system can provide adjusted terms and conditions with adjusted repayment details to be presented in the interface300, including, for example, the amount of fee to be charged for the requested cash advance, percentage to be deducted from the merchant's financial transactions for repayment of that fee, whether the deductions are done on a per-transaction basis or from financial transactions conducted by the merchant over a certain time period, e.g., hourly, daily, weekly, bi-weekly, monthly, or yearly. The adjusted terms may also specify a new time period for repayment may be specified in the terms and conditions.

If these adjusted terms and conditions, together with the repayment details, are agreeable to the merchant, then the merchant can select the accept option308button to accept the financing offer. In response, the payment system can deposit the requested amount in the merchant's account with a financial institution. Other approaches to providing the requested can also be used, as described in this specification. As described above, the payment system can instruct the payment system to deduct a portion of the merchant's earnings from future sales until the fee is repaid to the merchant financing system.

FIG. 4illustrates an example process400for providing inventory recommendations. The example process400is provided merely as an example and additional or fewer steps may be performed in similar or alternative orders, or in parallel, within the scope of the various embodiments described in this specification. A computing system, e.g., the payment system108, as described in reference toFIG. 1, determines that a merchant has a need for replenishing a product in the merchant's inventory402. As described above, this need can be determined based on the merchant's inventory data, sales data, or a combination thereof. The computing device can determine that a merchant is eligible for a cash advance for a particular amount, as described above404. The computing system can provide the merchant with a notification indicating that there is need for replenishing the product and with an offer for the cash advance for the particular amount, as described above406.

The merchant can accept or reject the offer for the cash advance, as described above408. If the merchant rejects the offer, then the computing system does not provide the merchant with the cash advance in the particular amount410. However, if the merchant accepts the offer, a determination can be made whether the merchant is requesting the cash advance at a different amount than the offered particular amount412. If the merchant has accepted the offer for the cash advance at the particular amount, then the computing system can provide the merchant with the cash advance414. The merchant can then start processing financial transactions through the merchant financing system422, as described below.

However, if the merchant is requesting the cash advance at an adjusted amount, for example, a higher amount or a lesser amount, then a determination can be made if providing the cash advance at the adjusted amount is approved416. If the computing system determines that providing the merchant with the cash advance at the adjusted amount is not approved, then the computing system does not provide the merchant with the cash advance418. In such instances, the computing system can provide the merchant with a message indicating that a cash advance at the requested amount is not approved. If, however, the computing system determines that providing the merchant with the cash advance at the adjusted amount is approved, then the computing system provides the merchant with the cash advance420.

After receiving the cash advance, the merchant can process financial transactions through the merchant financing system422. When processing a financial transaction, the merchant financing system can determine whether the merchant still needs to repay the remaining balance for the cash advance and fee424. If the balance still needs to be repaid, then a portion of funds are diverted from the financial transaction to the merchant financing system426. The amount of the portion of funds can be determined based on the rate for repayment for the cash advance and the fee. If the merchant has already repaid the remaining balance for cash advance and the fee, then no funds are diverted and the merchant can continue processing financial transactions normally422.

FIG. 5illustrates an example of an environment500for implementing a payment system508. Although a mobile device environment is described for purposes of explanation, different environments may be used, e.g., a web-based environment, to implement various embodiments.

The example environment500includes a payment system508, e.g., the payment system108, as described above, which can be implemented as computer programs on one or more computers in one or more locations, in which the systems, components, and techniques described below can be implemented. The example environment500also includes a user device502and a merchant device505.

The user device502and the merchant device505can each be a computer coupled to the payment system508through a data communication network550, e.g., the Internet. The user device502and the merchant device505each generally include a memory, e.g., a random access memory (RAM), for storing instructions and data, and a processor for executing stored instructions. The user device502and the merchant device505can each include one or more components, e.g., software or hardware, that are configured to respectively determine a geographic location of the user device502or the merchant device505, using, for example, various geolocation techniques, e.g., a global positioning system (GPS). Further, the user device502and the merchant device505can each be any appropriate device operable to send and receive requests, messages, or other types of information over the network550. Some examples of user devices include personal computers, cellular phones, handheld messaging devices, laptop computers, personal data assistants, tablet devices, and the like.

The network550can include any appropriate network, including an intranet, the Internet, a cellular network, a local area network, a wide area network, or any other such network, or combination thereof. Components used for such a system can depend at least in part upon the type of network, the environment selected, or both. Protocols and components for communicating over such a network are well known and will not be discussed herein in detail. The payment system508, the merchant device505, and the user device502can communicate over the network using wired or wireless connections, and combinations thereof.

As used in this specification, a financial transaction is a transaction that is conducted between a customer501and a merchant504at a point-of-sale. When paying for a financial transaction, the customer501can provide the merchant504with cash, a check, or credit card for the amount that is due. The merchant504can interact with a point-of-sale device, e.g., merchant device505, to process the financial transaction. During financial transactions, the point-of-sale device can collect data describing the financial transaction, including, for example, the amount of payment received from customers.

In some implementations, the payment system508is configured to accept card-less payment transactions from customers, e.g., the customer501. As used in this specification, a card-less payment transaction is a transaction conducted between the customer501and a merchant504at the point-of-sale during which a financial account of the customer501is charged without the customer501having to physically present a financial payment card to the merchant504at the point-of-sale. That is, the merchant504need not receive any details about the financial account, e.g., the credit card issuer or credit card number, for the transaction to be processed.

Before conducting card-less payment transactions, the customer501typically creates a user account with the payment system508. The customer501can create the user account, for example, by interacting with a user application503that is configured to perform card-less payment transactions and that is running on the user device502. When creating a user account with the payment system508, the customer501will provide portrait of the customer501, data describing a financial account of the customer501, e.g., credit card number, expiration date, and a billing address. This user information can be securely stored by the payment system508, for example, in a user information database511. To accept card-less payment transactions, the merchant504typically creates a merchant account with the payment system508by providing information describing the merchant including, for example, a merchant name, contact information, e.g., telephone numbers, the merchant's geographic location address, and one or more financial accounts to which funds collected from users will be deposited. This merchant information can be securely stored by the payment system508, for example, in a merchant information database512.

The payment system508is configured to perform card-less payment transactions. The payment system508can include one or more servers that are configured to securely perform electronic financial transactions, e.g., electronic payment transactions, between a customer and a merchant, for example, through data communicated between the user device502and the merchant device505. Generally, when a customer and a merchant enter into an electronic financial transaction, the transaction is processed by transferring funds from a financial account associated with the user account to a financial account associated with the merchant account.

The payment system508is configured to send and receive data to and from the user device502and the merchant device505. For example, the payment system508can be configured to send data describing merchants to the user device502using, for example, the information stored in the merchant information database512. For example, the payment system508can communicate data describing merchants that are within a threshold geographic distance from a geographic location of the user device502, as described in this specification. The data describing merchants can include, for example, a merchant name, geographic location, contact information, and an electronic catalogue, e.g., a menu, that describes items that are available for purchase from the merchant.

In some embodiments, the payment system508is configured to determine whether a geographic location of the user device502is within a threshold geographic distance from a geographic location of the merchant device505. The payment system508can determine a geographic location of the user device502using, for example, geolocation data provided by the user device502. Similarly, the payment system508can determine a geographic location of the merchant device505using, for example, geolocation data provided by the merchant device505or using a geographic address, e.g., street address, provided by the merchant. Depending on the implementation, the threshold geographic distance can be specified by the payment system508or by the merchant.

Determining whether the user device502is within a threshold geographic distance of the merchant device505can be accomplished in different ways including, for example, determining whether the user device502is within a threshold geographic radius of the merchant device505, determining whether the user device502is within a particular geofence, or determining whether the user device502can communicate with the merchant device505using a specified wireless technology, e.g., Bluetooth or Bluetooth low energy (BLE). In some embodiments, the payment system508restricts card-less payment transactions between the customer501and the merchant504to situations where the geographic location of the user device502is within a threshold geographic distance from a geographic location of the merchant device505.

The payment system508can also be configured to communicate with a computer system516of a card payment network, e.g., Visa or MasterCard, over the network550, or over a different network, for example, to conduct electronic financial transactions. The computer system516of the card payment network can communicate with a computer system518of a card issuer, e.g., a bank. There may be computer systems of other entities, e.g., the card acquirer, between the payment system508and the computer system518of the card issuer.

The customer501operating the user device502that is within a threshold geographic distance of the merchant504can interact with a user application503running on the user device502to conduct a card-less payment transaction with the merchant504. While interacting with the user application503, the customer501can select the merchant504, from a listing of merchants, with whom the customer501wants to enter into a card-less payment transaction. The user can select the merchant504, for example, by selecting a “check in” option associated with the merchant504. The user device502can communicate data to the payment system508indicating that the customer501has checked in with the merchant504. In response, the payment system508can communicate data to notify the merchant device505that the user has checked in. A merchant application506running on the merchant device505can notify the merchant504that the user has electronically checked in with the merchant504through a display screen of the merchant device505.

Once checked in, the customer501can collect, or request, items that are available for purchase from the merchant504. When the customer501is ready to enter into the card-less payment transaction, the customer501can, for example, approach a point-of-sale for the merchant504and identify him or herself. For example, the customer501can verbally notify the merchant504that the customer501wants to enter into a card-less payment transaction and can provide the merchant504with the customer's name. The merchant504can then interact with the merchant application506to select the customer501, from a listing of customers that have checked in with the merchant504, to initiate a card-less payment transaction for the items being purchased by the customer501. For example, the merchant504can determine a total amount to bill the customer501for the items being purchased. The customer501can verbally approve the total amount to be billed and, in response, the merchant504can submit a request for a card-less payment transaction for the total amount to the payment system508. In response, the payment system508can obtain, for example, from the user information database511, data describing a financial account associated with a user account of the customer501to which the total amount will be billed.

The payment system508can then communicate with the computer system516of a card payment network to complete an electronic financial transaction for the total amount to be billed to the customer's financial account. Once the electronic financial transaction is complete, the payment system508can communicate data describing the card-less payment transaction to the user device502, e.g., an electronic receipt, which can, for example, notify the customer501of the total amount billed to the user for the card-less payment transaction with the particular merchant.