Google Pay to Introduce SoundPods for Small Merchants Amid Paytm Crisis
- ByStartupStory | February 23, 2024
In a strategic move amidst regulatory challenges faced by Paytm, Google Pay is set to expand the availability of its SoundPod, an innovative audio device confirming payments. This initiative aims to provide ease and convenience to millions of small and medium-sized businesses (SMBs) across India.
“We’re pleased to announce SoundPods will be available for small merchants across India over the coming months, bringing considerable ease and convenience to millions of SMBs,” stated a spokesperson for Google Pay.
“This is in addition to the slate of consumer and merchant offerings we announced in October 2023 to expand the availability of responsible credit in India–a mission that we’re well on our way towards with encouraging momentum,” the statement added.
Google had piloted the SoundPod speaker last year, receiving positive feedback during testing. Ambarish Kenghe, VP of Products for Google Pay, mentioned in a blog post that the device helped merchants reduce checkout time significantly.
Notably, after introducing SoundPod, Google offered various plans, including a daily plan with a one-time fee of Rs 499 and a yearly plan of Rs 1,499, with cashback incentives for merchants.
This announcement comes at a critical time for Paytm, as the Reserve Bank of India (RBI) directed Paytm Payments Bank to halt new deposits from March 15, 2024, citing persistent non-compliances and supervisory concerns. Paytm’s payment devices, including QR, Soundbox, and Card machines, will continue to function despite the regulatory directive.
Paytm, credited as the inventor of payment soundboxes in 2017, currently has approximately 20 million merchants using its soundboxes in India. The recent RBI sanctions have led to heightened volatility in the shares of Paytm’s parent company, One 97 Communications, with significant stock price fluctuations.
Various brokerages, including Macquarie, Bernstein, and Goldman Sachs, have expressed concerns over Paytm’s situation. Macquarie downgraded Paytm to “underperform,” citing a risk of customer exodus due to the sanctions. Goldman Sachs issued a ‘neutral rating,’ predicting a slowdown in the company’s lending operations. Bernstein, while maintaining an “outperform” rating, cautioned about potential long-term impacts on Paytm’s business trajectory due to regulatory challenges.
The market awaits further developments as Google Pay aims to empower small merchants with its SoundPods, providing an alternative amid the ongoing challenges faced by one of India’s leading fintech players, Paytm.