A $10 Plastic Speaker is the Most Durable Revenue Line in Indian Digital Payments (indiadispatch.com) 33
India's digital payment platforms process trillions of dollars a year through UPI, the government-built real-time payments rail that handles more than 90% of all payment transactions in the country, but one of their largest net revenue line items is not a payment product at all: it's a cheap plastic speaker that sits on a shopkeeper's counter and reads out incoming payments aloud.
The roughly 23 million soundboxes deployed across India earn about $220 million a year in rental fees, more than every explicitly UPI-linked revenue line in the ecosystem combined, according to estimates from Bernstein. Each device costs $7-12 to manufacture and earns its platform $7-10 a year in rent. A story adds: PhonePe processes about 48% of all UPI transactions in India. Its net payment processing revenue in H1 FY26 was about $83 million. Its device revenue was about $34 million. Running nearly half of India's real-time payment infrastructure earns PhonePe only 2.4 times what it makes from renting speakers to shopkeepers.
The roughly 23 million soundboxes deployed across India earn about $220 million a year in rental fees, more than every explicitly UPI-linked revenue line in the ecosystem combined, according to estimates from Bernstein. Each device costs $7-12 to manufacture and earns its platform $7-10 a year in rent. A story adds: PhonePe processes about 48% of all UPI transactions in India. Its net payment processing revenue in H1 FY26 was about $83 million. Its device revenue was about $34 million. Running nearly half of India's real-time payment infrastructure earns PhonePe only 2.4 times what it makes from renting speakers to shopkeepers.
Because of analphabetism? (Score:3)
That's probably the reason it's a speaker and not a screen, correct? But then again, booking payments is only numbers, which shouldn't be that difficult. Any Indians here who can shed some light on this?
Re: Because of analphabetism? (Score:5, Informative)
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There is corruption in a lot of places in India. This is one of the few success stories of India, where people can make instant payments w/o carrying loads of cash or a check book. In the US, if one uses Apple or Android Pay, then it takes as much time as a debit/credit card transaction for the transaction to be completed - a day or so. Not sure what it is in Europe. But here, the transactions are pretty instant
The real issue Indians face are KYC (Know Your Customer) demands from various entities, suc
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Really? I have used UPI to pay for things in India (cash is no longer accepted in a lot of places, mainly b'cos they have no loose change), and there have been a lot of places w/o those speakers. Usually, after one scans the QR code, the phone beeps and shows a message that the transaction has been paid. I'd show that acknowledgement to the cashier, and they'd be satisfied
They cannot waste time on every payment to go and check the status
Except that they have to, since every payment happens serially. People don't scan the same QR code from their respective phones in
Re: Because of analphabetism? (Score:5, Informative)
It's an efficiency and convenience thing.
When this UPI system was launched, vendors had to continuously check their mobile to see if the payment had actually been received.
Now they just listen for the acknowledgement while multitasking.
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Here when you buy something you typically pay by putting your bank card into a card reader, or nowadays by tapping the card or your phone for a contactless payment. The card reading terminal of the shopkeeper has has an lcd screen that will show if the payment has been accepted or declined. Does it work differently in India? Do the shoppers have to enter the store's bank account into their phone to pay? In that case the shopkeeper would need some confirmation that the payment has been received.
Re: Because of analphabetism? (Score:5, Informative)
You scan the vendor's QR code on your phone, and then confirm the purchase in the app. This will send a notification that the vendor can view on their phone. The speaker just uses text-to-speech to give an immediate audible notification so the vendor doesn't have to look at their phone.
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Yeah, it works differently. As an example, if one has an Android and is in the US, one uses Google Wallet, which works the same way as Apple Pay, which is the way you described. The transaction takes exactly as long as it would if the card were to be used, which is typically one working day
In India, Apple Pay does not work, and on Android, people generally use GPay. Here, the card details are stored, but the transaction mechanism is different - uses a Blockchain method, so that the transaction is insta
Re: Because of analphabetism? (Score:2)
We have both systems - bank cards which you scan, and/or tap. BTW, the new terminals can also announce the payment made via card.
Which can be a privacy thing if you don't like people know how much you just blew in the comic book store.
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no, even the illiterate need to have basic money skills since they need to be functional, illiteracy is not binary, it is a matter of degree
i suspect this is just the least expensive effective solution to the problem which is why it won out over alternatives
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The illiterate just need to open an app, scan a QR code, enter a PIN (or use something like fingerprint, pattern or whatever locking mechanisms they use) and presto! Their transactions get approved. Only issue are elderly technophobes, who struggle w/ using apps, but they're not normally illiterate, just bad w/ apps
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the issue is do illiterate people even have fair or reasonable access to capital or technology?
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Audio confirmation is convenient, especially when handling multiple customers at a time. . . .
Would it not be trivial to have your phone play an audio track that sounds just like the confirmation? If all they're doing is listening for the confirmation and then moving on, that seems like it would be very easy to scam the merchant.
No. Phone has multiple pings -- WA, SMS, and what not. And it is not loud enough to be functional on the Indian streets. Like I said, this is not Starbucks.
Literal rent seeking (Score:3, Insightful)
This scheme locks in a resource/function and communal charges a rental/service fee far in excess off the cost to provide
Sadly many automotive manufacturers are going this way. Canâ(TM)t have Apple CarPlay or Android Auto in new Chevrolet EVs and other features in other vehicles. Sick as self drive in Tesla. They did it with software, and theyâ(TM)re coming for the rest of your life.
We are slowly walking into the dystopian future we read snotty years ago.
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This scheme locks in a resource/function and communal charges a rental/service fee far in excess off the cost to provide
Sadly many automotive manufacturers are going this way. Canâ(TM)t have Apple CarPlay or Android Auto in new Chevrolet EVs and other features in other vehicles. Sick as self drive in Tesla. They did it with software, and theyâ(TM)re coming for the rest of your life.
We are slowly walking into the dystopian future we read snotty years ago.
Walking into?
Awaken from your dreamy state and smell the ashes... We're already there.
What you describe is exactly how Visa, Mastercard, AMEX and the like operate... literally taking money for doing nothing beyond being a middle man. Yep, they take a cut of every transaction that goes over their networks and they've been working diligently to make sure every single transaction goes over their network. They've been quite aggressive in getting rid of non-card based payment methods (apple/google pay are
Plus peace of mind (Score:2)
What you describe is exactly how Visa, Mastercard, AMEX and the like operate... literally taking money for doing nothing beyond being a middle man. Yep, they take a cut of every transaction that goes over their networks and they've been working diligently to make sure every single transaction goes over their network.
[Emphasis mine]
You are not telling the whole story here.
I'm currently in the middle of a $15,000 purchase dispute with a Chinese vendor (for a CNC system). The device arrived non-functional, the merchant's customer service is wildly non-useful and time consuming, and after 3 months of dikking around I've decided to send it back.
I have clear E-mail evidence from the merchant acknowledging the problem, the CC company yanked back the payment and is forcing the merchant to issue an RMA for the device.
The credit card company i
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"far in excess off the cost to provide'
Pricing is not always dependent on cost to provide. As often, it is based on value received.
This seems like a high value item, to the merchant. Worth the 'cost to provide'. And solving an existing problem. Passes the test of value. Not simple rent-seeking, and I submit not at all...
Your car analogy suffers slightly, car makers are indeed finding new ways to derive recurring revenue, but adding value? I don't see it. They fail the test of value, in these subscription fe
Buy my app ! Rip off poor people ! (Score:1)
Seriously, I am sure someone has thought of this, so how do they prevent it ?
(*) Okay, conceived.
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Well, without this speaker thing, the shopkeeper has to either look at their mobile device and verify every transaction, or take the customer's word for it.
I've seen street vendors in NYC that will accept showing my phone with a Zelle confirmation displayed as proof of payment, and another poster says that's pretty common in India as well. This is, of course, dead easy to spoof. It's probably harder to spoof exactly the right tone of synthesized voice, coming from exactly the right point in space, to a su
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'I have written(*) '
'(*) Okay, conceived.'
And you're what, deceptive? Or just trivializing this thread?
Damn it, I fell for your clickbait.
So (Score:3)
A device that repeats what the computer says is the most profitable product in India...
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We've finally reached, nay, surpassed the Star Trek future! We no longer need a living person to repeat what the computer just said, we can have another computer do it.
Re: So (Score:3)
But does it have a nice rack?
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It has nice rackspace. 2 RU or 4 RU if you pay enough. Enjoyable for for co-habitation, I mean Co-location.
Re: So (Score:2)
I don't think anyone got that the original comment was a Galaxy Quest reference, and Sigourney had a pretty nice rack in that flick.
They are not that great. Have caused me problems. (Score:3)
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There are some vendors who'll only accept cash. Only thing - they then have to have almost the exact change, if they charge anything that isn't a round number. As it is, not too many people nowadays travel w/ a lot of cash in hand, so they have to both have the exact change, as well as not charge much more than a grand