Paper prototyping involves using simple materials like paper, sticky notes, and markers to simulate the interactions, functionalities, and user experience of the intended design. It is another low-fidelity technique that can be used to represent and test a service concept.

For example, a design team is working on improving the user experience of a mobile banking application. They want to test the usability of a new feature that allows users to transfer funds between their accounts with just a few taps. Using paper prototyping, they sketch out a simplified version of the mobile app's interface on sheets of paper. They draw screens, buttons, and labels to represent different stages of the transfer process. The team also prepares small cutouts of money symbols and account numbers that users can manipulate during the testing. They recruit a group of potential users or stakeholders and ask them to perform a series of tasks using the paper prototype. Users are instructed to tap on buttons, move the cutouts around to simulate transferring money, and provide feedback on their experience.

By doing this, the design team can gain valuable insights into the effectiveness and intuitiveness of the new feature. They can identify areas where users encounter difficulties, such as unclear labels or confusing navigation, refine the interface, and resolve any usability issues.