Jio Payments is poised to enter the soundbox segment, which has been dominated by Paytm and PhonePe until now. Jio’s soundbox, considered a payments and audio verification device, is set to be introduced in retail stores.
After an extensive pilot launch in Reliance Retail stores over a period of 8-9 months, the soundbox is now ready for a full-fledged launch. Initially tested in tier-2 cities and smaller metros such as Jaipur, Indore, and Lucknow, the device has now entered urban markets, albeit limited to the group’s retail outlets.
With two successful pilot projects under its belt, Jio Payments plans to expand the soundbox to retail stores beyond the Reliance group’s franchises. Industry experts view Jio’s entry into this segment as a strategic move, especially considering the current crisis faced by Paytm. Paytm, known as the industry leader and first mover in the soundbox segment, is reportedly recalibrating its devices to align with new QR codes following the Paytm Payments Bank controversy.
Experts believe that soundboxes offer a steady source of revenue. Merchants are charged for the device upfront and pay a fixed monthly rental fee for its services. In addition to providing auditory alerts, soundboxes also offer valuable insights into merchant behaviors, which can be used to offer loans based on this data.
The pricing details for Jio’s soundbox are not yet known, but experts suggest that if priced competitively, it could disrupt the market significantly. Paytm currently offers the device for ₹1 with a monthly fee of ₹125, while PhonePe charges ₹49 per month for rentals. BharatPe has also made a significant entry into the soundbox segment, and there are reports that Google Pay may soon enter the space as well.
With over 20 million Indian merchants using soundboxes, Paytm currently leads the market, closely followed by PhonePe.
