The National Payments Corporation of India (NPCI) is developing a unified Soundbox system that will support all UPI apps, enabling merchants to accept payments through any QR code using a single device, according to medianama.com. This initiative aims to simplify payment acceptance for both large retailers and small businesses by consolidating transaction confirmations into one Soundbox.
Currently, merchants must maintain multiple QR codes and corresponding Soundboxes for different payment apps like PhonePe, BharatPe, and Paytm, incurring subscription costs of Rs 100 to Rs 150 per month for each device. NPCI’s plan to standardize the Soundbox infrastructure will reduce these costs by eliminating the need for multiple devices, allowing merchants to manage settlements through a single system regardless of the UPI app used.
This move could impact the revenues of major payment firms such as PhonePe, BharatPe, and Paytm, as well as smaller UPI apps that already face challenges due to zero merchant discount rate (MDR) on UPI transactions. Pranav Pai, founding partner at 3one4 Capital, highlighted that Soundbox revenue has become important because UPI’s direct monetization model is weak under zero MDR. A decline in Soundbox revenue may make it harder for smaller UPI apps to justify investments in merchant acquisition unless they diversify into credit, working capital, SaaS, or advertising services.
NPCI’s rollout of a common Soundbox infrastructure is expected to streamline retail payments and reduce costs for merchants. The timeline for implementation and adoption by payment firms will be closely watched as the sector adjusts to this change in the UPI ecosystem.