Paytm Launches New Soundbox To Offer Visual Payment Alerts

Fintech major Paytm today launched an upgraded version of its soundbox device, which features a built-in digital screen for instant visual payment alerts.

Dubbed the ‘Mahakumbh Soundbox’, the 4G-enabled device was unveiled by founder and CEO Vijay Shekhar Sharma on the second day of the Startup Mahakumbh event.

In a statement, the fintech company said that the device allows merchants to receive instant payment alerts on a digital screen as opposed to the previous soundboxes that only provided instant audio payment confirmation.

“As pioneers of Soundbox technology, we introduced instant payment confirmations … With our new Made-in-India Display Soundbox, we are taking it a step further …,” Sharma said.

The MahaKumbh Soundbox comes with a 3-watt speaker for audio alerts, a battery life of 10 days, and supports 11 languages.

Why Is Paytm Going All Out On Soundbox?

Soundbox is a significant revenue driver for Paytm. In its investor presentation for the December 2024 quarter (Q3), Paytm said it witnessed more than 5 Lakh soundbox activations during the quarter, taking the total tally to 1.17 Cr.

Paytm has also been refurbishing inactive soundboxes and redeploying them to improve margins and rake in higher revenue per merchant. 

The fintech major has also been monetising the offering by launching advertising services on soundboxes. In the company’s Q2 FY25 earnings call, Sharma had said that Paytm was running audio ads from brands such as Meesho, Coca Cola, Mondelez and Dabur on the device.

Paytm’s Profitability Gamble

The launch of the new soundbox comes at a time when the company has turned its focus on turning profitable. Founder Sharma has reiterated several times over the past few months that Paytm is on track to clock a profit in Q1 FY26. 

To achieve this, the company has turned its attention to its core offering – digital payments – and is experimenting with other products too. 

Earlier this year, markets regulator SEBI granted approval to the company’s investment tech arm Paytm Money to act as a research analyst. Motilal Oswal believes this could pave the way for Paytm to diversify into the wealth management space, potentially unlocking a new “fee-based” revenue stream.

The company has also been looking to apply for a payment aggregator licence, following the Centre approving its proposal to invest INR 50 Cr in its payments arm, Paytm Payment Services Limited (PPSL), in August last year. 

The company managed to trim its consolidated net loss by 6% to INR 208.5 Cr in Q3 FY25 from INR 221.7 Cr in the year-ago quarter. However, operating revenue also declined 36% to INR 1,827.8 Cr during the quarter from INR 2,850.5 Cr in Q3 FY24.