Paytm has been in the forefront, when it comes to innovations in Digital and Mobile payments. They are already the largest mobile wallet company in India with a user base of over 100 million users.
Now, Paytm is working on a new way to facilitate mobile and digital payments and they are doing this based on ultrasonic sound waves. Called Paytm Sound Pay, the new feature will enable users to make payments at Point of Sale (PoS) by transferring information using Ultrasonic Sound waves.
Paytm mobile app will be updated with a new icon called Sound Pay – when the user presses the icon on their mobile, a sound will be emitted, which will carry information in regards to amount to be paid and customer Paytm account information.
Once the information is received by the registered merchant, it first checks to see if their if enough money in customer’s wallet. If the amount is present, the transaction gets completed by the amount is debited in customer’s wallet.
Nitin Misra, head of products at Paytm, told ET, “Consumers will soon have the option of clicking the ‘sound pay’ icon in the Paytm app. It will transmit ultrasonic sound at a certain frequency and it carries data. The data will include how much to pay and the customers credentials.”
Paytm is currently in the testing phase and when the test phase is successfully completed, it will be rolled out to users. No timeline has been given by Paytm for Sound Pay launch.
Information transfer through Sound Not New
While Paytm is the first mobile wallet to introduce this feature, it is not something new. Alibaba’s own wallet, AliPay had introduced sound based mobile payments back in 2013.
Also, using sound waves to transfer information has been around for a while. In 2015, Google has launched a chrome extension called Google Tone that used audible sounds to instantly transfer files between 2 computers.
Recent Announcements by Paytm
Financial Services Entry: Customers of Manappuram Finance And Muthoot Fincorp can now repay their loans using Paytm app. After receiving RBI approval to become a payment bank, Paytm launched their financial services business.
Education Space Payments: Paytm has introduced cashless payments specifically for educational institutions in India. With this service, Users can pay school fees & dues, cafeteria bills as well as buy uniforms, books and merchandise through the Paytm Wallet.
Movie/Event Ticketing: Paytm has launched a entertainment ticketing marketplace on its platform. They are more of on aggregator, where anyone can come and offer their tickets online. It will operate as a marketplace where a multiplex or theatre will be the seller
Hotel Booking: Paytm recently entered hotel booking space by partnering with Goibibo, Ezeego1, Via & TSI-Yatra
Hyperlocal Business: Paytm has entered into hyperlocal space with focus on food ordering, table booking, cinema tickets, and deals in the neighborhood.
Virtual Pre-paid Cards: Last week, Paytm announced launch of Virtual prepaid cards for consumers in partnership with ICICI Bank. With this virtual card, consumers will be able to pay at wide variety of establishments from the balance they have in their Paytm wallet.
Apart from this Paytm also announced various other initiatives including QR code based Cashless offline payment facility for Shopkeepers, Kirana stores or even a cab driver.