Avalara, Inc. recently secured a major technological breakthrough with the issuance of U.S. Patent No. US12775929B2. This patent, titled ‘Processing mobile payments when disconnected from payment servers’, introduces a powerful way to conduct digital transactions without an active internet connection. Merchants and consumers can now process secure offline mobile payments with the reliability typically reserved for online authorizations.
DELAWARE PATENT OF THE MONTH – NOVEMBER 2026
The innovation focuses on a computer-implemented method that enables mobile devices to securely facilitate offline transactions. The system manages transaction limits and risk assessments locally on the device, generating a secure payload that can be transferred to a merchant’s point-of-sale system. Once network connectivity is restored, the pooled offline transactions are transmitted to a central payment server for final settlement and funding. The invention is highly innovative and won the Delaware Patent of the Month for November 2026 granted by Swanson Reed because it overcomes significant technical uncertainties in secure data validation and financial risk management in disconnected environments. Designed by inventors Badekila Ganesh Prashanth Bhat, Krishna C. Kumar, Mohan Pattadai, and Sachin M. Nayak, the technology ensures commerce can proceed uninterrupted during network outages or in remote locations.
Practical Applications and R&D Tax Credit Eligibility
The practical applications of this technology span across the retail, event management, and transportation industries, where continuous transaction processing is critical despite unstable network connectivity. When businesses in the USA adopt or adapt this offline mobile payment architecture to develop new checkout protocols or improve their payment gateway resilience, the associated engineering efforts often involve a distinct process of experimentation. This systematic testing to evaluate cryptographic security, data synchronization, and overall system reliability qualifies as permitted research activities under IRS guidelines. Consequently, companies investing time and resources into integrating these disconnected payment systems can capture significant Research and Development (R&D) tax credits, effectively reducing their financial burden while funding future technological progress.
