Paytm Introduces Soundbox With Card Payment Capability
Paytm on Monday unveiled a new variant of its Soundbox product that now accepts card payments. Priced at Rs 999, the new Soundbox variant offers not only affordability but also a remarkable five-day battery life, making it a practical and cost-effective solution for merchants and consumers alike.
The new Paytm Soundbox serves as both a Bluetooth speaker and a payment acceptance device for merchants, enabling music playback while facilitating digital transactions. The device manufactured in India boasts a 4G network connection and is equipped with a 4W speaker.
"We are very happy to bring this device that accepts cards from all networks including American Express, Visa, Mastercard and RuPay," said Vijay Shekhar Sharma, founder and CEO, Paytm.
This latest innovation follows Paytm's earlier introduction of two other Soundbox variants, namely the Paytm Music Soundbox and Paytm Pocket Soundbox, each designed to cater to specific use cases.
The new Soundbox needs a debit/credit card that is tap-enabled to allow payments. The upper limit for payments via a card per tap is Rs 5,000. The device also offers alerts in 11 languages, customisable by the merchant through the Paytm for Business app.
"We have been pioneers of building in India and our devices have reached merchants already. This is one more product that shows our innovation, entire payment player in the industry can copy according to their benefits," said Bhavesh Gupta, president and COO, Paytm.
According to media reports, there are currently about 1 crore (10 million) Soundboxes in the Indian market, with Paytm having deployed 85 lakhs (8.5 million) of them to date. The company believes that this innovative Soundbox has the potential to sell an additional 4-5 crore units over the next 3-5 years, highlighting the immense demand for digital payment solutions in India.
According to a Bank of America (BofA) Securities report, Paytm could add 15 million new customers for soundbox devices in the next two to three years.
The impact of the Soundbox on digital transactions has been significant. In the previous fiscal year (FY23), Paytm reported a staggering 13721 million Soundbox-based transactions, effectively reducing the need for paper slips, saving a substantial 12.07 million pounds worth of paper.
Paytm's focus on expanding its merchant subscriptions through the Soundbox has paid off. Their latest financial results for Q1 FY24 reveal that merchant subscriptions have more than doubled to 79 lakh (7.9 million), compared to 38 lakh (3.8 million) Soundbox subscribers in the same period the previous year.
Paytm pioneered the introduction of audio-based confirmations through its innovative product, Paytm Soundbox, first in 2019. The success of Soundbox strategy has not gone unnoticed by competitors. Rivals such as PhonePe and Google Pay have also launched their own Soundbox products, highlighting the growing importance of digital payments in India.
Earlier on Monday, Pine Labs also announced the launch of Mini, a QR and Card acceptance device. A press release from the company mentioned that the device is expected to be available at nearly one-third of the cost of a regular Point of Sale (PoS) terminal. Pine Labs pegs Mini to be an ideal solution for small merchants.
