Jio Payments Takes on Paytm and PhonePe in Soundbox Segment

Jio Payments is stepping up its game to challenge established players like Paytm and PhonePe in the soundbox segment, aiming to shake up the digital payment market. After testing its soundbox device for 8-9 months in Reliance Retail stores, Jio is now gearing up for a full-scale launch across various retail outlets.

This strategic move by Jio comes at a crucial time as Paytm, the current leader in the soundbox market with 85% market share, faces challenges post the Paytm Payments Bank incident. Experts see Jio’s entry as a well-timed disruption in response to recent developments affecting its competitors.

Although the pricing details for Jio’s soundbox are yet to be unveiled, experts anticipate significant market impact if it’s competitively priced. Paytm currently offers its device for Rs 1 along with a monthly charge of Rs 125. Other players like PhonePe and BharatPe have also entered this segment, with Google Pay reportedly exploring entry as well.

According to reports, Paytm processed over 5 billion digital payment transactions through its Soundbox devices in FY22, selling one device every 6 seconds in 2022.

With over 20 million Indian merchants already using soundboxes, Jio’s move into UPI payments intensifies the competition. Soundboxes, besides providing auditory alerts, serve as point-of-sale devices for QR code transactions, offering lucrative income opportunities for fintech companies. Moreover, they provide valuable insights into merchant behavior, facilitating the provision of loans based on data.

Jio’s entry into the soundbox segment is poised to reshape the digital payment landscape, setting the stage for increased competition and innovation.