Google Pay is set to launch its SoundPod device across India in the upcoming months, providing small merchants with an audio-based solution to track QR code payments. This move directly competes with Paytm’s Soundbox offering.
According to the company’s blog, SoundPods aim to offer significant ease and convenience to millions of small and medium businesses (SMBs) across India. The product has undergone a limited pilot phase, receiving positive feedback from participating merchants for its ability to reduce checkout time.
Merchants will have the option to subscribe to SoundPods through daily or yearly plans. The daily plan costs INR 5 per day for 25 days, with a one-time fee of INR 499, while the yearly membership is priced at INR 1,499, deducted from the merchant’s settlement account.
Google Pay joins other fintech players like Paytm, PhonePe, and BharatPe in introducing such devices. Paytm notably pioneered this technology during the peak of the COVID-19 pandemic in 2020, creating a new revenue stream for fintechs through subscription fees charged to merchants.
These devices not only offer revenue but also help fintechs assess merchants’ creditworthiness and facilitate targeted loan disbursals. This is crucial for digital payment platforms, given their inability to charge commissions from end users on UPI transactions.
The launch of SoundPods coincides with regulatory troubles faced by Paytm Payments Bank, which has been barred by the RBI from undertaking various banking activities until March 15. This development underscores the importance of innovation and diversification in India’s dynamic fintech landscape.
Amidst this, India’s digital payments space continues to flourish, with UPI transactions reaching new heights in January 2024. PhonePe and Google Pay dominate this landscape, jointly commanding over 80% of total UPI transactions.
The announcement follows a recent parliamentary panel highlighting the dominance of foreign-owned players like PhonePe and Google Pay in the digital payments sector, underscoring the competitive dynamics within India’s fintech ecosystem.