In a move aimed at transforming the landscape of card payments in India, Paytm, the country's prominent fintech firm, has unveiled its latest innovation: a $12 "Card Soundbox." This device is designed to streamline the way merchants accept payments, offering compatibility with major card networks, such as Visa and MasterCard.
According to a report by Reuters, one of the standout features of Paytm's "Card Soundbox" is its affordability. Priced at 999 rupees (approximately $12.08), Paytm promises to make card payments accessible to a wide range of merchants, big and small, using the device. Additionally, the 'tap-and-pay' feature allows merchants to accept card payments of up to 5,000 rupees (about $60).
Paytm Expands Payments Network
Paytm's main objective is to onboard as many merchants as possible and engage them in the initiative. The company's CEO and Founder, Vijay Shekhar Sharma, emphasized the importance of expanding merchants' network, leveraging the popularity of the soundbox.
The previous version of the soundbox, which provides instant audio alerts on the amount paid to merchants through an inbuilt speaker, has reportedly been purchased by more than 8 million users. According to Paytm's statement, the company focuses on generating revenue through subscriptions from its network of merchants, which stood at 36 million as of June.
However, as Paytm introduces its "Card Soundbox," it faces competition from Pine Labs, which unveiled a similar device at a lower cost the same day. Pine Labs positioned its product as price-friendly and targets to boost digital payment adoption in India.
Vijay Shekhar Sharma Expands Stake in Paytm
Meanwhile, Sharma revealed its intention to bolster his stake as the company approached a significant milestone in terms of profitability. Speaking to Bloomberg News in a recent interview, Sharma expressed his dedication, saying: "There is never a day that I would not buy more equity in Paytm."
This announcement comes as Sharma solidifies his position as the single largest shareholder of Paytm, with a substantial ownership of 19%. The company received its domestic capital markets regulators in 2021 for its USD $2.2 billion initial public offering (IPO), according to a report by Finance Magnates. Paytm is backed by prominent investment companies such as SoftBank and Berkshire Hathaway.
