India’s Reliance Group, led by Mukesh Ambani, is reportedly testing a sound box payment system as part of its push into the financial services sector. This innovative device, similar to those previously introduced by Paytm and PhonePe, validates and announces successful payments to merchants audibly. Sources suggest that Reliance is currently testing the device with its employees at select stores on its campus.
The sound box operates using Jio Pay as the reconciler, offering an audible confirmation feature that has gained popularity in busy marketplaces and noisy street corners. This feature instills trust among both buyers and sellers regarding payment transactions. The bill of materials cost for the sound box is less than $20.
Companies like Paytm and PhonePe have capitalized on the sound box’s potential, turning it into a subscription model by imposing nominal charges on merchants. Beyond its payment confirmation function, the device offers insights into merchant behaviors, enabling the provision of loans based on this data.
Reliance’s interest in the sound box comes as its financial services unit, Jio Financial Services, aims to diversify its offerings. Currently, the company plans to introduce wealth management services in partnership with BlackRock and expand into merchant lending. This expansion aligns with the broader strategy of Reliance to establish a digital-first, tech-led business model.
The company’s solid financial position allows it to access capital at more affordable rates than many of its domestic counterparts, giving it a distinct advantage if it decides to venture into the sound box payment system business.
While Reliance’s specific plans for the sound box and its financial services expansion remain undisclosed, its internal testing approach and strategic focus suggest that it may be positioning itself to make a significant impact in the evolving digital payment landscape in India.
