Summary
Paytm - Ab paisa bolta hai
Challenge
India- the biggest digital payments story One of the biggest stories of the last few years has been the motoric rise in digital payments. The resistance of the small merchants But still, while big merchants have jumped on to the digital bandwagon, the chota-dukandaar or the small merchant remained stubbornly resistant. They had accepted digital without ever truly embracing them. Which is to say that they might have had a Paytm, PhonePe, Gpay account on their phone, but still preferred transacting in cash. This wasn't good for the fintech category nor the digital payments ecosystem. The small merchants are the backbone of Indian retail. If they continued to remain resistant, the category couldn't grow. And since the category is close to near saturation with big merchants, the small merchants represent the final frontier. Where the next big wave of expansion is going to come from. Challenge: How could Paytm get small merchants who already had means to accept digital payments to fully embrace them over cash? Objective - Expand the merchant base of Paytm. Build preference over competitors in the soundbox device audio market to maintain leadership. Increase interest among the merchant community for Paytm Soundbox.
Objective
Campaigns to spread digital payments focus on the customers (demand- side). However, the category cannot expand unless more merchants embrace them (supply-side). Small merchants have been the most reluctant because cash is simple while digital payments are complex. Paytm launched India's first ever voice- based instant payment confirmation system- Paytm Soundbox. By making money talk, it made digital payments carry the emotional reassurance and simplicity of cash. The Paytm Soundbox reached 6.6 million merchants and was awarded as Most Innovative Product and Best Digital transformation initiative at the BW Unicorn Summit & Awards and the India DevOps Show 2022, respectively.
Strategy
Reimagining the PayTM Soundbox as the reassuring sound of progress for small merchants. PAYTM SOUNDBOX A simple device with a low manufacturing cost that supported 11 Indian languages, had a bluetooth speaker and a rechargeable battery that lasted up to 8-10 hours. Which meant that the merchant need not leave it plugged in. It was linked to their Paytm account so anytime a payment came through, it instantly announced the exact amount of the money received even if the customer was paying with PhonePe or Gpay. Moreover, multiple merchants confirmed the biggest advantage of the soundbox. It elicited usage for other people's transactions. The mere sound of the soundbox in action drove preference for other customers in the vicinity who were non-tech-savvy. This was especially true with lower SEC/Rural customers not used to major displays of tech-in-action in their daily lives. Each Soundbox transaction became 3 things rolled into one: • An invitation to the non-tech savvy customers in the immediate vicinity to try it. • An audio ad reinforcing Paytm's name and advantage 50-75 times a day. • An emotional reassurance from Paytm and a key driver of preference over other brands. Even if the merchant wasn't at the store, the staff would hear the message and needn't call him.
Data
Campaigns to spread digital payments focus on the customers (demand- side). However, the category cannot expand unless more merchants embrace them (supply-side). Small merchants have been the most reluctant because cash is simple while digital payments are complex. Paytm launched India's first ever voice- based instant payment confirmation system- Paytm Soundbox. By making money talk, it made digital payments carry the emotional reassurance and simplicity of cash. The Paytm Soundbox reached 6.6 million merchants and was awarded as Most Innovative Product and Best Digital transformation initiative at the BW Unicorn Summit & Awards and the India DevOps Show 2022, respectively.
Solution
Results
Paytm Soundbox was a first of its kind innovation in the market. While digital payment methods were trying to cover ground for decades in India, they could not become the successors of cash at small merchant shops. However, Paytm Soundbox was able to build a new category- shifting assurance from physical to audio. On the supply side, over 4.6 million touchpoints were added in one year. Further, every 6 seconds one soundbox continues to get deployed on- ground. Paytm recorded a whopping 230% growth in sales of Soundbox. The devices deployed increase from 2 million to 6.6 million in a year. Paytm remains unbeaten by threatening competitors by growing its leadership to over 70%. There was 17.9% jump in the number of enquiries for the Paytm Soundbox.
