Soundboxes, which make a sound whenever a mobile payment is completed, has been popular in India. And Google is jumping on the bandwagon to establish a solid foothold in the world's second-largest digital market and develop its own payments company.
With Google Pay, the tech giant has quickly become one of the market leaders in mobile transactions in India. Now, the company is testing out a soundbox in the nation to notify merchants when they have received UPI payment confirmations, the country's own mobile payment standard.
Since providers normally do not take a share in UPI transactions, soundboxes have evolved as both a convenient tool for businesses and a means for payment providers to generate revenue.
Google's Entry for Payment Services
According to TechCrunch, Google has reportedly begun distributing its white-labeled speakers, named Soundpod by Google Pay, in some areas throughout North India, including New Delhi.
To accept any kind of UPI-based payment, Google's soundboxes have a QR code on the front that is connected to the company owner's bank-registered phone number. ToneTag, which Amazon finances, is reportedly developing these Soundpods.
The device has an integrated speaker for announcing successful transactions in various languages.
Google's gadget, similar to those of its rivals, has a tiny LCD screen that displays the payment amount, battery and network status, and manual controls. A merchant's QR code associated with Google Pay for business may be scanned using the soundbox. Payments may be made by scanning the code with any UPI-enabled app.
Because tap-and-pay is not widely used in India, these soundboxes often do not accept NFC payment. Moreover, many budget mobile phones lack built-in NFC capabilities.
TechCrunch's sources said Google is giving out the speakers to select retailers at no charge.
Merchants have reported that Google Pay personnel have given them a few days to acquire and install the speakers after signing up for the service.
See Also: Google Fears Unlicensed Apps Will Emerge and Compromise Security Following Indian Antitrust Verdict
The Indian Market
Google has been competing for some time in India's oversaturated payments market. Tools like a soundbox-which may seem unusual to those outside India-have, have rapidly become table stakes for mobile payment services.
In the Indian market, Google Pay faces stiff competition from established players like Paytm, Walmart-owned PhonePe, and BharatPe (supported by Tiger Global).
Small businesses and street vendors now use payment soundboxes to verify customer payments through audio.
Soundboxes also boost merchant purchases. In a multilingual nation like India, they support several languages, have long battery life, and provide a daily transaction report.
Fintech entrepreneurs charge merchants for soundbox solutions.
To recruit sellers, they occasionally give the equipment away for free. PhonePe rents for $0.60 (49 Indian rupees) each month, whereas Paytm rents for $1.53 (125 Indian rupees). Merchant size and agency promotions determine the fees.
Also Read: Walmart's PhonePe Relocation to India Costs $1 Billion in Taxes
