Fintech major Paytm launches India’s first NFC Card Soundbox for offline merchants

Vijay Shekhar Sharma-led fintech major Paytm has introduced what it claims to be India's first 'Paytm NFC Card Soundbox.' 

Paytm said the payment device integrates Near Field Communication (NFC) technology with mobile QR payments.

The NFC Card Soundbox serves as a card payment machine and receipt announcer, providing an efficient solution for millions of offline merchants.

Empowering with comprehensive payment solutions

The Paytm NFC Card Soundbox marks a significant advancement in mobile payments, democratizing access to secure NFC card-reading technology for small shops.

It allows merchants to accept a range of payments, including credit and debit cards and the Unified Payments Interface (UPI). The company said customers can simply tap their cards or scan a QR code to make payments, enhancing convenience and speed.

"We are committed to helping India’s small merchants by providing them with the latest technology to accept all types of payments at an affordable price. Today’s launch of the ‘NFC Card Soundbox’ marks the next chapter in the innovation of Paytm Soundbox, India’s most loved and successful payment device," said Paytm's spokesperson.

Key features of the NFC Card Soundbox

The Paytm NFC Card Soundbox is designed with several key features to streamline day-to-day operations for merchants. It offers an extended battery life of up to 10 days, reducing the need for frequent charging.

The device provides instant audio confirmation for transactions, ensuring clarity and reducing errors. Additionally, the display screen shows transaction amounts, aiding in transparency and record-keeping.

The device supports notifications in 11 languages, including English, Hindi, Gujarati, Bangla, Odia, Marathi, Punjabi, Telugu, Malayalam, Tamil, and Kannada, making it accessible to a diverse range of merchants across India.

Focused on addressing merchant needs

Paytm's founder, Vijay Shekhar Sharma, highlighted the challenges merchants face with traditional EDC machines, which include maintenance and connectivity issues, and their higher cost.

The new NFC Card Soundbox aims to resolve these issues by combining multiple payment functionalities into a single device, eliminating the need for separate machines for card payments, QR codes, and payment alerts.

Sharma stated, "This device solves for this issue integrating all three capabilities," during the virtual launch event, emphasizing the device's role in simplifying payment processes for merchants.

Paytm's market performance

The launch comes after Paytm reported a 36% fall in revenue from operations to Rs 1,502 crore compared to Rs 2,342 crore in the same quarter the previous year.

Additionally, the net loss widened to Rs 839 crore, a substantial increase from Rs 357 crore in Q1 FY24.

Despite this, Paytm said it remains focused on enhancing merchant payment solutions. The company is optimistic about future growth, driven by new merchant sign-ups, reactivation of existing merchants, and the introduction of innovative devices like the NFC Card Soundbox.

As of June 2024, the net device subscriber base for Paytm Soundbox increased to 1.09 crore, up from 79 lakh in June 2023.