Alibaba and SoftBank-backed Paytm aims to sell a tonne of gold through its platform this year, buoyed by an increasing number of consumers turning to digital avenues to invest in the yellow metal.
Alibaba and SoftBank-backed Paytm aims to sell a tonne of gold through its platform this year, buoyed by an increasing number of consumers turning to digital avenues to invest in the yellow metal. The company claims to have already sold over 100 kgs of gold through its platform in two months since the launch of the service in May this year. “We have witnessed good traction as consumers are shifting from traditional methods of buying gold to saving online,” Paytm Senior Vice President Krishna Hegde told PTI. Consumers have realised that the option of purchasing digital gold at market-linked prices is more beneficial over buying physical gold coins, he added. “We have already sold over 100 kgs of gold in the first two months alone and we aim to sell over a tonne of gold by the end of the year,” he said.
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Paytm had partnered gold refiner, MMTC-PAMP to allow consumers to buy gold for as low as Re 1. Using their Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in MMTC-PAMP’s secure vaults free of charge. They can also request for their gold to be delivered at their homes in the form of minted coins or sell it back online to MMTC-PAMP.
“Going forward, we will educate a wider set of customers about buying gold online starting with as low as Re 1. Our goal is to inculcate the habit of saving regularly through purchase of digital gold,” Hegde said.
India is the world’s largest consumer of gold. An estimated 24,000 tonnes worth USD 900 billion of gold is stocked in homes and bank lockers in India. Indian government is encouraging people to buy digital/ paper gold, instead of the physical form to curb large scale hoarding. It has also introduced a sovereign gold bond scheme that offers better returns and owners do not have to worry about security of the precious metal apart from other benefits.