- Paytm started its digital gold business about two months back in partnership with MMTCPAMP.
- It claims to have sold as much as 175kg of gold since launching this business.
- It is also in talks with jewellers across the country to enable consumers who can use the gold for making jewellery.
Betting on Indian’s love for the yellow metal Paytm will now offer cash back in the form of gold on its platform. The Alibaba-backed company which started its digital gold business about two months back in partnership with MMTCPAMP, witnessed a significant chunk of its users opting to buy gold on its app using their cashback. This is what prompted Paytm to enable gold as cashback. Started in 2008, MMTCPAMP is a JV between Metals and Minerals Trading Corporation of India (MMTC) and PAMP of Switzerland.
Paytm claims to have sold as much as 175kg of gold since launching this business. It is also in talks with jewelers across the country to enable consumers who can use the gold for making jewellery. The gold business was started as an anchor for the broader plan of building a wealth management business.
“For every transaction on Paytm, you will be given the option of opting for regular cashbacks or gold. We have seen a significant uptick in this business with growth doubling in the last month,” said Krishna Hegde, SVP, Paytm. He said the ‘partnership with jewellery shops’ work is in progress and would take some time before the option is rolled out. More than 60% customers of Paytm users are opting to buy and accumulate gold instead of selling or requesting delivery, the company said.
Paytm is also looking to roll out loan-based products this year as the company looks to build a sizeable wealth management business.Users can buy gold for as low as Re 1 and can sell as many times after accumulating it in their accounts. For physical delivery of gold, a user must accumulate at least a gram of gold.
Source: Times Of India