A $10 Plastic Speaker is the Most Durable Revenue Line in Indian Digital Payments

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by msmash

February 19, 2026

AI-Generated Deep Dive Summary

India’s digital payment platforms, powered by the UPI system, process trillions of dollars annually, but one of their most lucrative revenue streams isn’t a high-tech payment product—it’s a simple $10 plastic speaker. These devices, which cost between $7 and $12 to manufacture, generate significant income for companies like PhonePe through rental fees. Bernstein estimates that 23 million such soundboxes are deployed across India, bringing in approximately $220 million annually—a figure surpassing all other UPI-linked revenue sources combined. PhonePe, one of the leading players in India’s digital payments space, handles nearly half of all UPI transactions. While its payment processing revenue reached about $83 million in the first half of FY 2026, its device rental income was even higher at $34 million. This highlights how critical these low-cost speakers are to the company’s profitability. Each speaker generates between $7 and $10 per year in rent for PhonePe, underscoring the surprising financial impact of a seemingly simple tool. The success of these soundboxes lies in their practicality and widespread use among small shopkeepers, especially in rural areas where digital adoption is still growing. These devices provide real-time updates on incoming payments via audio, making them an essential part of India’s payment ecosystem. The story of the plastic speaker serves as a fascinating example of how innovative technology can coexist with basic yet effective solutions, driving financial inclusion and efficiency in one of the world’s largest digital payment markets.

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Originally published on Slashdot on 2/19/2026