Paytm launches NFC soundbox accepting card and QR-based mobile payments

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One 97 Communications Limited (OCL), which owns the brand Paytm, has announced the launch of 'Paytm NFC Card Soundbox’—a single device for merchants to accept both card payments (Tap-and-Pay), mobile payments via QR code, along with sound box capability.

The idea of a single device is eliminates the need for merchants to keep a separate EDC card machine, QR codes and a sound box for payment alerts. The device comes with all three capabilities.

This payment device leverages NFC technology for card payments.

“EDC machines comes with host of maintenance and connectivity challenges. Additionally, it is not the most affordable option for merchants. While majority of payments today are mobile based, a merchant has to keep a machine specifically for accepting cards,” founder Vijay Shekhar Sharma said during a virtual meet to launch the device.

He continued saying, “This device solves for this issue integrating all three capabilities.”

Sharma, who was joined by Ripunjai Gaur, chief business officer for offline payments, spoke with merchants across different states and took feedback on the new device.

"With an improved and longer-lasting battery life of up to 10 days, merchants can benefit from the Paytm NFC Card Soundbox without frequent charging. In addition to its core features of instant audio confirmation and a display screen for transaction amounts, this innovation helps merchants streamline their day-to-day transactions," the company said.

The team mentioned that the sound box now supports notifications in 11 languages.

Merchant revenue in focus 

At Rs 900 crore, Paytm's revenue from payments business was dented in the first quarter of financial year due to closure of PPBL (Paytm Payment Bank Limited) accounts, owing to RBI directives.

The same stood at Rs 2,342 crore during the year-ago period. The net payment margin was Rs 383 crore during the quarter, down from Rs 853 crore QoQ.

Payment margins are dependent on what Paytm earns from non-UPI instruments like post-paid, EMI, and cards, and subscription charges on devices sold to merchants.

While Paytm claimed to be seeing its new merchant signups reaching January 2024 level, its revenue from per device subscription has bottomed out in Q1 FY25. The net device subscriber base (for Paytm sound box) inched up to 1.09 crore during June 2024, up from 79 lakh in June 2023.

However, the management is expecting this to increase in future as it works towards new sign ups, reactivation of merchants and redeployment from inactive merchants.