Payments app Paytm on 27 April 2017 launched ‘Digital Gold’ on its platform to allow customers to buy and sell gold through electronic platform.
This first wealth management product was launched in partnership with gold refiner MMTC-PAMP. It offers a real-time international pricing mechanism for the customers.
How Digital Gold will work?
• Using Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in MMTC—PAMP’s secure vaults free of charge.
• Customers can buy and sell gold either by money (starting Re 1) or by weight (starting 0.1 gram).
• Customers can even request for their gold to be delivered at their homes in the form of minted coins.
• Moreover, if the consumer wants to sell the gold, MMTC-PAMP will buy the gold back from them and the money will be transferred to the user’s bank account.
• They can pay via multiple payment modes such as Paytm wallet, debit/credit cards, net banking and others.
• Consumers transacting over Rs 20000 through Paytm, need to provide KYC details to avail the benefit of the gold scheme.
India is the world’s largest consumer of gold. An estimated 24000 tonnes worth USD 900 billion of gold is stocked in homes and bank lockers in India, as per World Gold Council estimates.
Gold is the preferred form of investment for Indians. Through Digital Gold product, Paytm intends to target lower-middle and middle class Indians. This product will make it easier for customers to invest in gold digitally.