On January 30, 2014, the US Patent & Trademark Office published a major patent application from Apple that reveals a new financial Systems Integration System. Apple's invention relates to financing integration with an e-commerce marketplace, and more specifically, the present technology relates to a Financing Systems Integration system that allows customers to shop-and-checkout using a Loan ID. Apple currently has a treasure trove of inventions relating to a future iWallet system but this is a new beast all together. The patent filing illustrates that Apple is investigating the whole financial matrix and not just the electronic wallet side of the equation. Apple's patent dives into creating a system to handle all sorts of loans, from student loans to Business-to-Business loans and everything in between. Our report provides you with an overview of this massive system along with a wide array of patent figures presenting multiple flowcharts for varying loan scenarios. In one part, Apple's financial system almost hints of one day bypassing the credit card system entirely.

Apple's Patent Background on Current Credit Systems

Credit Card Sales

Many systems exist for processing credit card sales, both in brick-and-mortar point-of-sale scenarios and in online markets. Credit card transactions are familiar to customers and retailers, but suffer from many drawbacks. For example, onboarding and implementing online credit card systems can come with a very high cost. Also, each credit card provider can have different standards and requirements that can prevent standardized network communication protocols. Finally, credit card companies charge a high percentage of each sale made with a credit card.

Personal Line of Credit

To avoid the fees and setup costs associated with credit cards, a customer wanting to finance a purchase could apply for a loan or a personal line of credit from a bank or other financing company. However, this process is tedious--requiring many manual steps such as calling or driving to a bank, speaking to a banker, providing personal financial information, obtaining copies of pay slips, signing loan documents, waiting for approval, and maintaining a loan account. There is a need to simplify this process and integrate it into the sales experience--both in online markets and in physical point-of-sale retail scenarios.

Education Loans

Additionally, educational loans are oftentimes used to purchase items needed for an educational program. Many students use laptop computers for note taking, conducting research, writing term papers, taking tests, etc. Indeed, sometimes computer equipment is required for a class--such as computer programming, graphic design, animation, etc. Some educational loan providers provide loans for these expenses, but the process is disconnected from the sales experience, involves an unfamiliar interface, or involves one or more of the manual steps described above. Consequently, there is a need to simplify the educational loan process and integrate it into the sales experience.

Business-to-Business (B2B) Sales

Furthermore, business-to-business sales sometime involve equipment lease programs or payment using financing. For example, many business lease computer hardware and license enterprise level software systems. However, the process for obtaining these business leases and licenses involve a business customer calling a sales representative, ordering items, arranging financing through a third party, and working with the supplier's interface--which can be esoteric, proprietary, and unfamiliar. There is a need to simplify the business-to-business sales, lease, and licensing processes and integrate it into the sales experience.

Additionally, known systems for providing financing for making purchases involve generally no visibility into the process. For example, oftentimes customers are left to wonder if a loan will be approved, if an order has been shipped, or if a payment has been processed. Likewise, the financing partners do not gain visibility into the seller's system to determine when to provide payment to the seller per the financing contract with the customer. There is a need to standardize financing workflows, integrate financing partners' systems into a central system, and provide process visibility.

Apple Invents a New Financing Systems Integration System

Apple's invention relates to financing integration with an e-commerce marketplace, and more specifically, the present technology relates to a Financing Systems Integration system that allows customers to shop and checkout using a Loan ID.

The features and advantages of the disclosure can be realized and obtained by means of the instruments and combinations particularly pointed out in the appended claims.

The Financing System Integration (FSI) Engine

Some embodiments of the present technology integrate point-of-sale (POS), online sales checkout processes, and enterprise business sales interfaces with systems for authorizing, managing, and settling loan instruments and credit products through third party financial partners.

Some embodiments of the present technology use a Financing System Integration (FSI) engine to integrate POS and online store checkout platforms with financing partners.

Some embodiments of the present technology utilize standard protocols and APIs to seamlessly integrate the loan process with an online store or POS terminal.

In some embodiments of the present technology, a customer can apply for a loan, automatically be approved, receive a Loan Identification Number (Loan ID), and use the Loan Identification Number (Loan ID) to complete a transaction.

In some embodiments of the present technology, the FSI engine is operatively coupled with online and POS retail terminals selling, leasing, or licensing physical or digital items. In some embodiments of the present technology, the FSI engine uses one or more software services to manage orders, shipping, user accounts, partner records, payments, inventory, etc. In some embodiments of the present technology, the FSI engine communicates with financing partners using standardized protocols, thereby providing a consistent experience.

Some embodiments of the present technology involve a system for integrating a financing institution and a sales partner using an integrated financing integration (FSI) engine configured to transmit a request for a loan along with loan application information to the financing institution, receive a loan approval communication from the financing institution, complete a financial transaction with the sales partner wherein the transaction exchanges a right in an item offered for sale by the sales partner secured by the approved loan, and notify the financing institution of the transaction amount and item purchased with the approved loan.

Some embodiments of the present technology involve a method comprising receiving from a financial institution a loan approval communication including a loan number, a loan amount, and a loan application identifier and receiving from a client device a purchase request for an item in an online store and the loan number as payment for the item.

Some embodiments of the present technology include receiving a request for a loan from a customer along with loan application information and transmitting the request for a loan along with loan application information to the financial institution.

Some embodiments of the present technology include receiving a loan application communication along with a loan number and order details and creating a quoted order based on the order details. Some embodiments of the present technology include, upon receiving a loan approval communication, changing the quoted order to an approved order.

Some embodiments of the present technology include fulfilling an approved order by delivering the item to the customer, notifying the financial institution that the order is fulfilled, and receiving payment for the item from the financial institution. Some embodiments of the present technology include sending batch updates to the financial institution, the batch updates relating to the quoted order, the approved order, the customer, and the loan application.

Business-to-Business Loans via FSI

Some embodiments of the present technology involve a system integrating a financing institution and a business-to-business (B2B) sales partner using an integration platform comprising an integrated financing integration (FSI) engine and an intermediary application tool. In some embodiments of the present technology the intermediary application tool is configured to present the B2B sales partner with financing products, obtain the B2B sales partner's financing product selections, generate a financing application form for the B2B sales partner, transmit a request for financing along with the application form to the financing institution, receive a loan approval communication from the financing institution along with loan terms, transmit the approval communication and loan terms to the B2B sales partner, and receive the B2B sales partner's approval of the loan terms. In some embodiments of the present technology the FSI engine is configured to complete a financial transaction with the sales partner wherein the transaction exchanges a right in an item offered for sale by the sales partner secured by the approved loan, and notify the financing institution of the transaction amount and item purchased with the approved loan.

Quick Overview of the FSI Engine

As shown in Apple's patent FIG. 1 below, the FSI engine 101 is coupled with a plurality of sales partners 102, 103, 104, 105, 106, 107 … n. The sales partners take purchase orders and facilitate the delivery of goods and services to individual customers and business customers.





In some embodiments of the present technology, the sales partner #102 can comprise physical point-of-sale (POS) retailers. For example, in some embodiments of the present technology, the sales partner can include one or more brick-and-mortar retail outlets such as an Apple Store.

In some embodiments of the present technology, the sales partner #103 can comprise online retailers. For example, the sales partner can comprise an online store, such as the Apple Online Store. In some embodiments, the sales partner #104 can comprise an application distribution system, such as Apple's App Store or a media distribution system, such as Apple's iTunes.

In some embodiments of the present technology, the sales partner #105 can comprise a point-of-sale business partner and OEM reseller. For example, the sales partner 105 can comprise a mobile device reseller who offers services such as cellular or network connectivity for the mobile device.

In some embodiments of the present technology, the sales partner #107 can comprise a business-to-business buyer. For example, the sales partner 107 can comprise a business purchasing enterprise level software solutions or leasing computer hardware for an entire enterprise.

In some embodiments of the present technology, the sales partners can also comprise online aggregators, distributors, and re-sellers. In some embodiments, the sales partner #106 can comprise an online marketplace that aggregates one or more online retailers--each of which facilitate business to consumer sales and business to business sales.

Additionally, in some embodiments, the sales partner #106 can comprise an online bidding website that serves as a platform for a plurality of people and businesses to action, bid, buy, and sell a wide variety of goods and services.

Apple's patent FIG. 2 noted above illustrates an exemplary system integrating previously unconnected systems and partners through a central Financial System Integration (FSI) engine according to some embodiments of the present technology.

Apple's patent FIG. 3 noted below illustrates an exemplary interface for customers to checkout of an online retail store using a Loan ID number relating to a loan from a financing partner according to some embodiments of the present technology.





Apple's patent FIG. 9 noted below illustrates an exemplary point-of-sale terminal interface on a mobile device according to some embodiments of the present technology.





The Process of Conducting a Financial Sale with a POS Terminal

Apple's patent FIG. 10 illustrates an exemplary dataflow diagram illustrating a process of conducting a financing sale with a point-of-sale terminal according to some embodiments of the present technology.





Return Merchandise Authorization

Apple's patent FIG. 11 noted below illustrates an exemplary method of return merchandise authorization (RMA), new order fulfillment, and settlement with a financing partner according to some embodiments of the present technology;





Information Exchange between the FSI Engine & Financial Partners

Apple's patent FIG. 12 noted below illustrates a high-level data flow diagram showing information exchange between the FSI engine and financing partners using standardized protocols and APIs according to some embodiments of the present technology.

High Level Interaction between the FSI Engine, Customers and Financial Partners

Apple's patent FIG. 13 noted below illustrates a system diagram showing high-level interaction between the FSI engine, customers, and financing partners using standardized protocols according to some embodiments of the present technology.





Securing Financing with a Foreign Financing Institution

Apple's patent FIG. 14 noted below illustrates an exemplary workflow for securing financing with a foreign financing institution and complying with Europe, Middle East, India, and Africa (EMEIA) regulations according to some embodiments of the present technology





Patent Credits

Apple credits Naeem Ansari as the sole inventor of patent application 20140032392 which was originally filed in Q3 2012.

Apple's patent application covers a lot of ground. For those interested in this invention, there's a lot to explore in this patent filing, such as: the user experience, exemplary methods, Enterprise Business Customer Experience and Exemplary Methods, Point-of-Sale Experience and Exemplary Methods, Order Management/Return and Exchanges and Partner Integration. Review Apple's invention for details.

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