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 reportedly
positioned its product as price-friendly and hopes 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
This article was written by Jared Kirui at www.financemagnates.com.
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