Chennai-based startup transforms merchant payments landscape with innovative device combining soundbox and card machine capabilities at breakthrough price point
In a significant development for India’s digital payments ecosystem, ToneTag has unveiled a groundbreaking IoT Node that promises to revolutionize how merchants accept digital payments. The innovative device combines the functionality of traditional card machines with advanced features at the cost of a basic soundbox, positioning itself as a game-changer in the merchant payments space.
The announcement comes at a crucial time when India’s retail sector, comprising over 45 million merchants, is rapidly transitioning to digital payment solutions. ToneTag’s solution addresses a critical market gap by offering enterprise-grade payment acceptance capabilities at a fraction of the traditional cost.
Kumar Abhishek, Founder & CEO of ToneTag, emphasizes the transformative potential of their solution: “Our soundbox empowers merchants with valuable data insights and contactless payment options, all at a disruptive price point. We’re not just creating another payment device; we’re building an ecosystem that enables merchants to participate fully in the digital economy.”
The device’s innovative architecture processes payments locally, eliminating the need for constant server communication. This unique approach results in 99% transaction reliability while reducing processing fees to just 20% of industry standards. The solution accepts both UPI payments and tokenized cards, offering merchants comprehensive payment acceptance capabilities.
What sets ToneTag’s IoT Node apart is its advanced data analytics capabilities. The device captures detailed metrics including transaction frequency, notification latency, and connection strength. When integrated with billing systems, it can track SKU-level data and customer purchase patterns, enabling merchants to offer personalized promotions and make data-driven business decisions.
The solution’s location telematics feature has already demonstrated significant impact, with partner applications seeing user engagement increase from 20% to 44% in stores where the device is deployed. This feature enables location-based services and targeted marketing opportunities, creating additional value for both merchants and payment providers.
ToneTag’s strategic advantage lies in its end-to-end control over both hardware and software intellectual property. Unlike competitors who rely on third-party manufacturers, this integrated approach enables faster product launches and superior compliance management. The company’s ability to offer contactless payments without expensive NFC components further strengthens its competitive position.
For Tamil Nadu’s vibrant startup ecosystem, ToneTag’s innovation represents a significant milestone. The state, known for its strong technical talent pool and growing fintech sector, stands to benefit from the company’s presence. Local merchants can leverage this technology to modernize their operations while maintaining competitive pricing.
“The integration with ONDC is particularly exciting for Tamil Nadu’s retail sector,” notes Dr. Rajesh Kumar, President of the Tamil Nadu Retailers Association. “Small merchants can now participate in e-commerce without significant upfront investments, leveling the playing field with larger retailers.”
The solution’s impact extends beyond individual merchants to the broader digital payments landscape. By dramatically reducing the cost barrier for digital payment acceptance, ToneTag’s innovation could accelerate digital payment adoption across Tamil Nadu and India as a whole
