Google Pay extends its QR soundbox to small merchants in India following a successful trial run.

On Thursday, Google announced its plan to introduce the SoundPod, a portable speaker designed to promptly validate and announce successful payments, to small merchants across India in the coming months. This expansion of Google Pay in India, where the company holds a prominent position in the mobile payment market, coincides with the firm’s decision to scale back some of its payment apps in the U.S.

During a limited trial of the SoundPod last year, the company received favorable feedback, with merchants reporting reduced checkout times, as outlined by Ambarish Kenghe, VP of Products for Google Pay, in a recent blog post.

These compact devices, often referred to as “soundboxes” locally, have gained significant traction in India, providing merchants with a convenient way to confirm payments and address any disputed transactions.

Paytm, a leading financial services firm, currently dominates the soundbox market, with PhonePe also expanding its presence in this space. It’s estimated that over 20 million merchants in the country already utilize these devices, with production costs ranging from $18 to $20. (Interestingly, Paytm is currently facing regulatory challenges as it navigates through a period of uncertainty.

The soundbox was initially developed to cater to small Indian merchants who couldn’t afford traditional point-of-sale devices but were open to accepting payments via UPI (Unified Payments Interface), a network created by a consortium of retail banks in India, which has since become the preferred method of transaction for many Indians. Surpassing the combined popularity of Visa, Mastercard, and Amex, these devices have prompted major payment players to explore ways to leverage their widespread adoption.

Over time, the soundbox has evolved into a profitable subscription model, with various providers charging merchants subscription fees. Beyond its primary function of providing auditory alerts for transactions, the allure of the soundbox lies in its ability to offer valuable insights into merchant behaviors, enabling the provision of loans based on this data.

Google Pay is offering the SoundPod at a nominal cost, with merchants having the option of paying a one-time fee of $18 for one year or $6.06 per day for 25 days in a month. Additionally, merchants who use the SoundPod to process 400 payments in a month will receive $1.5 in cashback.

Expressing pride in contributing to India’s digital payments landscape, Ambarish Kenghe of Google emphasized the company’s commitment to long-term investment in this journey.

Meanwhile, Reliance, India’s largest firm by market capitalization, has also been testing a similar device at its campus since last year. Confirming its existence during an earnings call, the company announced plans to launch the device in the market soon.