NPCI is developing an interoperable soundbox platform that would enable merchants to link all their UPI QR codes to a single payment confirmation device. The initiative aims to replace the fragmented model where merchants subscribe to multiple soundboxes from PhonePe, BharatPe, Paytm, and other providers at costs of Rs 100 to Rs 150 per device per month.
Under the proposed architecture, a centralized NPCI platform would aggregate real-time transaction confirmation data from all UPI apps into a single database. Merchants would register one interoperable soundbox in any payment app and link all their QR codes to it. NPCI has held early conversations with major industry players and third-party UPI apps on the technical framework.
Payment firms currently generate revenue from proprietary soundbox subscriptions. Standardizing this layer may reduce a key income stream for smaller UPI apps already constrained by zero merchant discount rates. 3one4 Capital founding partner Pranav Pai warned that mandating interoperability alongside zero MDR policies would force the industry to rely on cross-subsidy rather than sustainable unit economics.