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4Payment - Digital Wallet - Coggle Diagram
4Payment - Digital Wallet
Transferring Money
How Legacy money transfer works
Inefficiency
Cumbersome UI (Routing, Account numbers)
Slower (1 or 2 days)
Checking System
5 party graph
Automated Clearing House (ACH)
Faster (within 1 or 2 days) and Low cost (batch processing)
Digital Wallet
Pure Digital Wallets (PayPal)
Money flows on the original payment rails as usual.
Banks are moving money from one account to another.
Information flow is decoupled from the traditional rails and initiated within digital wallet applications
Ecosystem Wallet (Alipay)
Incentives for users to keep balance within the wallets.
Interest payment by investing in Money Market Funds
Appeal to offline users
Replace cash by:
QR code payment receive by merchant
Physical printout (low cost)
Add on services for higher margins
Lending (Ant Financial)
Social network based Wallet
Venmo (bought by PayPal)
Business Model
Add a layer of social meaning to financial transaction
WeChat
From social network to Payment platform.
Started as Facebook + WhatsApp in China
Lunar App (Red card)
Marketplace
Payment platform
Digital Wallet - Enabler for Cashless Society