Fintech major Paytm on Thursday said it has recorded 2x growth in the digital gold transactions during the last six months with average order value going up by 60 per cent. The company has also announced the launch of its high-value transaction product feature, wherein users can buy Paytm Gold worth up to Rs 1 crore in one go on the app. “Since the beginning of this financial year, new users have increased by 50 per cent and the average order value is up by 60 per cent. With this, the total transaction volume on the platform has crossed the milestone of 5,000 kg,” a statement said.
The company has now extended the Paytm Gold services to Paytm Money platform, enabling users to buy and sell digital gold on any of the two platforms, it added. Paytm said it will allow users to buy Paytm Gold worth up to Rs 1 crore in one go on its app. Previously, users were allowed to buy gold only up to Rs 2 lakh in a single transaction.
“Now, with this change, users can purchase higher quantities of Gold in a completely seamless and transparent manner,” the statement said. Paytm said it has registered a steady rise in the number of customers and over 73 million people have bought Paytm Gold on the platform till now. Almost 40 per cent of these buyers are from smaller cities and towns, and this year’s Akshay Tritiya saw 2.5X sales compared to last year, it added.
“As the pandemic continues, Paytm’s digital gold has generated massive interest from Indians who want to continue buying gold for the purpose of investment, personal use and gifting during these uncertain times, but have been restricted from going out to buy gold or meet friends and family,” Paytm Money CEO Varun Sridhar said.
He added that this trend will accelerate in the future, even after the pandemic ends. “…we have big plans for this product and major offers and promotion for digital gold may be unveiled in the near future,” he said.
Paytm had partnered with gold refiner, MMTC-PAMP to allow consumers to buy gold through its platform.
In a separate statement, Paytm Mall – Paytm’s e-commerce unit – announced the final leg of its Diwali sale from November 13-16. Paytm Mall would also offer generous discounts on smartphones, apparel, footwear, and accessories range.
“This year throughout the festive seasons we have managed to bring the best of deals from banks and brands. We will keep the momentum going in the coming months. Our tie-up with Citibank is helping customers add more cheer to the festive fervour by availing exclusive cashback on each transaction,” Abhishek Rajan, COO of Paytm Mall, said.