Reliance could rival Paytm and PhonePe with a sound box
Sound box, a pocket-sized speaker which validates and announces successful payments to merchants, was introduced by Paytm. Reliance, which has shown its financial services aspirations with Jio Financial Services, is now testing a sound box in some of its stores. The device uses Jio Pay as the reconciler. The company has a tradition of internally testing new offerings with staff before a public launch, but it remains unclear when or if Reliance plans to unveil the device.
Reliance's sound box interest coincides with Jio Financial Services
Reliance's interest in the sound box payment system coincides with its financial services unit, Jio Financial Services. The conglomerate is looking to expand into more businesses. The firm plans to venture into merchant lending, offering trade credit, personal loans, store improvement loans, and unsecured business loans through a digital-first, tech-led business model. Reliance has a distinct advantage in this area, as it can access capital at more affordable rates than many of its Indian counterparts.
Sound box provides companies insights into merchant behaviors
The sound box has evolved into a lucrative subscription model, with companies like Paytm and PhonePe imposing nominal charges on merchants while providing invaluable insights into merchant behaviors to facilitate loan offerings. Numerous companies, including large banks like HDFC and ICICI, as well as tech giants Amazon and Google, have launched or tested their own sound boxes in recent months. The sound box has become a symbol of digital transactions in India, particularly popular in marketplaces and noisy street corners.
