How fintech leader Paytm revolutionized QR and took UPI to every nook and corner of India
Its revolutionary solutions have transformed India’s payments and commerce landscape, making digital transactions accessible across the length and breadth of the country. Launched in 2014, Paytm Wallet was widely adopted by those making digital and mobile payments for the first time. The Vijay Shekhar Sharma-led company’s pioneering spirit continued with the launch of the QR payment system in 2015. This solution was a huge win for merchants, especially small shop owners, who could accept digital payments at zero upfront cost, without requiring an internet connection or a POS machine .
Paytm recognized the need for a payment solution that would be affordable, easy to use and secure for both merchants and consumers. As a pioneer in the digital payments space, Paytm developed the QR code-based payment method for brick-and-mortar stores, becoming the first company to introduce this cutting-edge technology to retail merchants across India.
Paytm’s product readiness and scalable platform helped accelerate the adoption of QR codes among merchants when the Indian government announced demonetization in 2016. The company’s QR code solution was enhanced in January 2020 with All-in-one QR, which became the only source QR code. for merchants to accept payments from Paytm payment instruments, third party sources and all UPI instruments.
In recent years, Paytm UPI has driven India’s transition to cashless payments for both P2P fund transfers and merchant payments. Paytm UPI has driven the country’s digital transaction volumes in recent years, and the company’s rapid rollout of low-cost QR codes has brought underpenetrated merchant segments that once preferred cash-based payments into the digital payments fold.
During the Q3 FY 2023 earnings call, Paytm founder and CEO Vijay Shekhar Sharma said the company’s focus on merchant payments has created a scalable subscription UPI revenue model. “I feel very positive and inspired by the introduction of our device business, especially Soundbox which has led to significant scale in UPI purchases,” he said.
The company has built a merchant network of over 30 million businesses across 450 cities and towns, and it plans to expand this to around 1,000 cities over the next two to three years. Today, more merchants use Paytm’s QR codes compared to other payment companies in India.
But Paytm’s innovation did not stop there. In 2020, the company launched its Soundbox, a state-of-the-art payment acceptance device that uses IoT technology to provide real-time audio confirmation for payment completion, ensuring a seamless payment experience for both customers and merchants. Today, Paytm Soundbox is seen in every merchant store and has become an industry standard where every other fintech company is jumping on the Soundbox bandwagon.
The fintech giant continues to strengthen its market leadership in offline devices, with the number of merchants paying subscriptions for payment devices such as Paytm Soundbox and POS reaching 6.1 million at the end of January 2023, an increase of 0.3 million a month.
Paytm’s success in revolutionizing digital payments in India has made it one of the most innovative and impactful companies in the fintech industry. With its wide range of payment options and payment devices, Paytm has made it easy for millions of Indian consumers and merchants to transition to a cashless economy. Based on this success, Paytm is now also leading the initiative in digital lending, offering practical loans to people and businesses across the country.
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