Business consultancy project

5.5.6 Online Payment tools.

In addition to the tools mentioned above, there are also alternative online payment services, such as PayPal and Google Wallet, which are creating the possibility of digital and mobile payments and peer-to-peer money transfers worldwide. (Transforming money powering potential, 2019) PayPal’s net payment volume was around 161.5 billion U.S dollars in the 1st quarter of Y 2019, which is 22% higher than Y 2018. (PayPal's total payment volume from 1st quarter 2014 to 2nd quarter 2019 (in billion U.S. dollars), 2019)
PayPal was launched before the Google wallet, and it is the best alternative of money transfer both for the consumer and business market. Google wallet is considered as the cheapest online payment service, which enables keeping debit and credit card information on a smartphone and transforming it into a virtual wallet. (Google Wallet vs PayPal-which one is better?, 2016)

4. Mobile Financial Services Model

Depending on the deployment of the service and integration among stakeholder’s MFS service model can be implemented in the following four ways. (Chaix & Torre, 2011)

1. 
   Bank Centric Model
   

The bank enables the money transfer between the receiver and sender by providing the connection between other banks or mobile network operator. In this model, banks implement the mobile payment application and provide the merchant with the POS system.

2. 
   Operator Centric Model
   

In this model, MNO interacts as the vital player by providing the required technology for money transaction. The Operator Centric model was very demanded in the less developed countries where traditional financial institution market penetration is very low.

3. 
   Collaborative Model
   

The collaborative model characterizes the mobile payment solution, which is established in the collaboration between banks and telecom operators, and in some cases, involve the third-party service providers as well.

4. 
   Independent Service Provider Model (ISP)
   

In the ISP model, the third-party acts as an independent intermediary in providing transaction. Apple Pay, Google Pay, PayPal, and Wallet are independent payment solution. These services are considered as user-friendly tools, as for proceeding with payment, a consumer needs email, bank account, and smartphone supporting contactless payment.
Figure.17 Mobile Financial Service Model

7.