Paytm, the mobile payments and QR code pioneer in India, has revolutionised the way merchants accept payments from customers using Soundbox. In fact, the company was the first in India to launch an audio-confirmations device with the Paytm SoundBox.
Taking forward PM Narendra Modi’s ‘Make in India’ vision, Paytm’s Soundbox is 100% indigenously developed. Paytm Soundbox is completely made in India and empowers India’s small merchants. As of 31st March 2023, more than 6.8 million merchants are now paying subscriptions for Paytm's payment devices like Soundbox and PoS. In a span of just one year, the company has gone to 6.8 million devices deployment from 2.9 million devices a year ago.
A first of its kind in India, the device was introduced by Paytm in 2019 and provides instant audio confirmation to merchants whenever a payment is made through a Paytm QR code. This has helped to build trust between merchants and customers, as merchants can quickly confirm successful payments and reduce the risk of false confirmations or customer fraud.
Following the footsteps of Paytm, many other fintech companies have also launched their smart audio devices, but haven’t seen much success as Paytm. Companies such as BharatPe, PhonePe, and Google Pay, are trying to ape Paytm’s sound device SoundBox.
Nithin Kamath, Founder & CEO, Zerodha, in a tweet appreciated Paytm Soundbox and termed it as a best example of product by Indian fintech company. "India is unique. Copy-pasting models from the US, etc, has hardly worked. Paytm's speaker for Indian vendors that reads out payments is one of the best examples of a product made specifically for the Indian context by an Indian fintech," Kamath said.
Vijay Shekhar Sharma, Founder of Paytm, quote tweet Kamath's tweet and thanked him. "First a QR based payment acquiring for merchants, and then soundbox for confirmation. Proud of @Paytm‘s pioneering technology team whose products become mainstream for whole country. True believer of #HarPaymentDigital. Thank you Nitin," Sharma said.
Paytm SoundBox is completely a made in India product, Shishir Gupta, CEO of Oaktree replied to Nithin Kamath's tweet. "Also it’s one of few electronic device, completely designed and made in India. Thanks to @vijayshekhar sir’s zid ki hum India main hi poora banayenge…,” Shishir Gupta said.
Vijay Shekhar Sharma quoted this tweet and said, "Bilkul. Yahi banayenge , aur puri duniya ko dikhayenge. Hum bhi kar sakte hain #MakeinIndia and totally world class."
Kamath's tweet was quote tweeted by another user also, Rajeev Mantri. "One of the best examples of product development with a customer focused approach and first principles thinking. Not for the first time, it is @Paytm which dreamed this up and deployed at scale. @vijayshekhar," Mantri said in a tweet.
For Paytm, the Soundbox is a device that also adds to its business growth. Goldman Sachs in its February's report noted that revenue contribution from devices remained robust and stood at 15% of payments revenue in QF3Y23.
With the Soundbox, the company is also building trust with merchants. During Oct-Dec quarter of FY23, over 85% of the value disbursed to merchants was using a Paytm payment device, showing a strong correlation between device deployment and loan distribution. Moreover, 45% of disbursements were repeat loans to merchants. Paytm’s revenue from Payment Services to Merchants rose 9% year-on-year to Rs 640 crore in the Q3FY23, driven by strong growth in the payments devices business. This includes revenues from Paytm’s comprehensive offerings of online and in-store payment acceptance services such as Payment Gateway, All-in-one and Dynamic-QR, POS, and Soundbox.
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