Fintech giant Paytm made a significant announcement on Monday (July 31), introducing two new variants of its popular soundbox device – Music Soundbox and Pocket Soundbox. Paytm CEO Vijay Shekhar Sharma and group president and COO Bhavesh Gupta unveiled the new soundboxes during a virtual event.
Paytm Introducing the Music Soundbox and Pocket Soundbox
The Music Soundbox allows merchants to play music via Bluetooth while waiting for payments. It functions as a regular soundbox that also doubles up as a Bluetooth speaker. Notably, music playback pauses automatically when transactions are detected. On the other hand, the Pocket Soundbox is a smaller and slimmer iteration of the original soundbox. It comes with a lanyard, making it convenient for merchants on the go, such as auto-rickshaw drivers, street vendors, and delivery executives.
Subscription Model and Local Manufacturing
According to Paytm CEO Vijay Shekhar Sharma, the new soundboxes will follow a subscription model. Additionally, the rent for the soundboxes will vary between INR 1 to INR 150, depending on the merchant, and will support 11 languages. Both devices are powered by 4G and are proudly made in India, as highlighted by the Paytm CEO.
Future Growth and Market Penetration
Group President and COO Bhavesh Gupta expressed optimism about the potential for future growth, stating that the company has a runway of 3-5 years to expand the product base. He projected that there could be as many as 50 million soundboxes in the country by the end of the said period. Gupta also emphasized the importance of domestic manufacturing, stating that producing the soundboxes in India allows them to better understand the unique needs and use cases of Indian merchants.
Paytm Market Position and Performance
Paytm currently holds a strong position in the soundbox segment, having deployed 7.9 million payment devices across the country. Despite increasing competition from other payment startups like PhonePe and Google Pay, brokerage BofA Securities believes that Paytm’s deep penetration in the soundbox market positions them well to capitalize on future opportunities. In its performance update for Q1 FY24, Paytm reported a 44.5% year-on-year decline in consolidated net loss, signaling positive momentum for the company. Paytm’s shares on the BSE ended Monday’s session with a more than 5% increase, closing at INR 801.60.
