A Filipino invention with a US patent
A Filipino has just invented a credit and debit card payment system for toll ways, ferries, parking, etc., which the inventor claims is much more efficient than cash payment.
The United States Patent and Trademark Office (USPTO) granted his invention a patent in the United States for 20 years (Patent No. US11,687,912 B2).
Cash vs. credit/debit card payments
According to Moneyzine.com, “cash accounted for 18% of point-of-sale transactions worldwide in 2021,” and that “experts predict that the market share of cash transactions will drop to around 10% by the end of 2025.”
It also cited that “The COVID-19 pandemic significantly reduced cash usage, causing a 32.1% drop worldwide in 2020.”
“Credit cards accounted for 40% of point-of-sale transactions in the US in 2021. Similarly, debit cards ranked as the second most common payment option with a 30% market share, while cash payments accounted only for 11%.”
Tolled passageways
The inventor said that fees for Philippine tollways, ferries, parking, etc. are generally paid in cash; thus, a vehicle must stop at a manned toll booth and the driver must pay the toll fee with cash or card.
He also said that while electronic toll collection (ETC), meant to replace manned toll booths, has been here for many years, most vehicle drivers still prefer to pay cash, resulting in long queues at the booths.
In addition, he said each tollway has its own payment system; hence, a vehicle with ETC for one tollway may not be able to pass through another tollway without going through a manned toll booth.
The inventor
The inventor of this new payment system is Renato C. Valencia, former President and CEO of Social Security System, and who was also in commercial banking and was in the sugar industry.
Valencia recounted that when he left government service in 1998, he was looking for something to keep him busy. He noted when passing an expressway that it was still using paper tickets when stored value cards were already in vogue elsewhere.
He decided to form a payment company with some colleagues to introduce digital payments in tollways, mass transit, ferries and parking.
His company introduced stored value card payment in MRT on a pilot basis, but it closed down when it could no longer sustain its operations.
He then decided to just apply for US and Philippine patents for his inventions, mostly in digital payments. The United States Patent and Trademark Office (USPTO) recently granted a 20-year patent to one of his inventions – credit/debit card payment system for tolled passageways.
How it works
Most toll ways, ferries and parking have their own payment systems which are not interoperable.
So Valencia invented a common payment card platform for tolled passageways by: (1) linking a payment card to the vehicle identity (RFID sticker, plate number, etc.); and (2) connecting the backend operations of a tolled passageway to the card networks (Visa, MasterCard, Discover, JCB, Union Pay, etc.).
This way, a vehicle entering a toll way is tagged in, charges are computed, tagged out, and the corresponding fees are charged to the linked payment card. Clearing and settlement follow at the card networks.
With a payment card platform accrediting the tolled passageways, a registered vehicle can pass with automatic payment through tollways, ferries and parking without having to pass through a manned toll booth.
Of course, the invention has to to be converted to a mobile or website application program before it can be used.
The inventor may be reached at [email protected].