The soundbox, a small device that emits an audible confirmation of transactions, is becoming increasingly popular in India. Several of the country’s biggest fintech startups are now investing heavily in these devices, with some even unveiling advanced versions that can double as card machines.
Paytm Leads the Charge
Paytm, one of India’s leading fintech companies, has launched an advanced version of its soundbox that accepts cards from multiple payment networks. The device is priced at just 999 Indian rupees (approximately $12) and supports up to 11 languages. It also features a display and a battery that can last for up to five days on a single charge.
The soundbox, which has a bill of materials cost less than $20, is rapidly becoming an essential tool for merchants in India’s retail sector. Its audible confirmation feature is particularly popular in marketplaces and street corners, where it instills trust and confidence in both sellers and buyers regarding payments transactions.
Tap and Pay Feature
Paytm’s new soundbox also features a tap and pay capability, which allows cardholders to complete transactions up to $60. This feature is supported by most cards and a significant portion of card transactions fall within the $60 limit. Scores of Android smartphones also support card usage via the tap and pay feature, which will work with Paytm’s device.
A Lucrative Subscription Model
The soundbox has evolved into a lucrative subscription model over time. Companies like Paytm and PhonePe impose nominal subscription charges on merchants, making it an attractive option for them. The real allure of the soundbox extends beyond its auditory alerts — it provides invaluable insights into merchant behaviors, facilitating the offering of loans based on this data.
Banks Take Notice
Banks were earlier hesitant in chasing the QR or soundboxes market in India because they felt that there is no money to be made in the category. However, firms like Paytm have proven a business case for lending by assessing merchant’s cash flow and transactions. This has piqued the interest of banks, who are now taking notice of the potential benefits of soundboxes.
Rishi Chhabra on Visa’s Position
Rishi Chhabra, VP and Head of Merchants Sales at Visa, said: "The all-in-one Soundbox will propel payments and consumer choice to the next level." He added that Paytm has always been at the forefront of innovating for India’s small businesses, solving their payments and financial services problems.
Paytm’s Card Offering
Vijay Shekhar Sharma, founder and CEO of Paytm, said: "Today with Paytm Card Soundbox, we take it to the next level. We have found that merchants and consumers need card acceptance as simply as mobile payments with Paytm QR Code."
Pine Labs Unveils New POS Machine
Pine Labs, a rival fintech company backed by Peak XV and Fidelity, has unveiled a new POS machine that adds some soundbox alert features. The startup said its new device costs a third of the traditional POS machines.
PhonePe’s Take on Soundboxes
PhonePe, another leading fintech company in India, has also been investing heavily in soundboxes. However, it did not comment on its specific plans for the devices.
The Future of Soundboxes in India
The increasing popularity of soundboxes in India is a testament to the growing demand for innovative payment solutions in the country. As more fintech startups invest in these devices, we can expect to see even more advanced features and capabilities in the future.
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