Sound boxes solve a digital payment pain point | WARC | The Feed

Sound boxes solve a digital payment pain point

Internet-connected devices that read out audible digital payment confirmation messages are proving popular with both merchants and customers across India. 

Why are they needed?

Digital payments have been increasing since the 2016 demonetisation policy was launched and the government introduced a unified payments interface (UPI) that allowed users to make instant bank transfers with mobile phones.

But many vendors still have feature phones with SMS limits, so confirmations of payment may not come in real time if inboxes are full. Sound boxes – first introduced by Paytm in 2019 and since copied by other fintech companies – offer a simple way to reassure both customers and merchants that a payment has been made and received. They also deter people from using apps to create fake payment receipts.

Why it matters

Sound box set-up and subscription charges are turning into a lucrative revenue stream for fintech companies – which make no money from facilitating UPI transactions – while the logos on them provide useful brand exposure in contexts, such as kirana stores and produce carts, where that would not otherwise be the case. Sound boxes also help fintech companies cross-sell their other financial services, such as loans, to merchants. 

Further, the insights that can be derived from transaction patterns and business operations can be used to develop more targeted and effective marketing campaigns. 

Takeaways 

• A Paytm spokesperson told Rest of World that gross revenue from Paytm Soundbox subscriptions in Q3 FY 2023 was $150m from 6.8 million devices across the country. 
• BharatPe, PhonePe, MobiKwik and GooglePay now offer similar devices, as do traditional banks such IndusInd Bank and AU Small Finance Bank.

Key quote

“On deploying our sound boxes, we anticipate our user base to increase as it will likely attract new merchants looking for value-added services to help them manage their businesses more effectively” – Upasana Taku, co-founder of digital payment app MobiKwik.

Sourced from Rest of World