Paytm’s wealth management product, Paytm Gold, has added another feature in the form of a free locker facility for its 220 million customers. Paytm Gold, which launched in April, allows users to buy, store and sell gold through Paytm. Users can buy gold from MMTC-PAMP (India’s top gold refiner) starting at Re. 1 and store it in MMTC-PAMP’s free and 100 percent insured lockers. They wouldn’t have to bear any additional costs that they typically pay if they are storing in physical lockers in banks.
This not only makes gold-buying a more democratized activity but also makes storage uncomplicated and transparent. It also further’s Paytm’s overarching vision of financial inclusion, wherein the company wants to bring half a billion Indians on its platform in the next few years. Irrespective of the amount of gold a customer can purchase, he/she will have access to the free lockers.
Customers will also receive live price updates and have the option to sell back their accumulated gold online instantly to MMTC-PAMP. “This is one of the landmark steps towards transforming the way the Indian consumer buys gold,” says Arjun Raychaudhuri, Head of Strategy and Digital Transformation at MMTC-PAMP. ALSO READ: Paytm announces ‘Make Your Salary Day a Savings Day’ initiative to promote digital gold
Gold buying is integral to Indian society. A majority of the population sees the yellow metal as a future investment. However, offline gold is fraught with various risks and pressures, including additional costs like “making charges” which most offline jewelers can’t reduce. “Further, the minimum amount tends to be high making gold inaccessible to several income groups. Owing to the affordability and convenience our product offers, a number of households across income levels are saving in Paytm Gold today,” says Krishna Hegde, Senior Vice President – Paytm.
“Further, the minimum amount tends to be high making gold inaccessible to several income groups. Owing to the affordability and convenience our product offers, a number of households across income levels are saving in Paytm Gold today,” says Krishna Hegde, Senior Vice President – Paytm.
There is no cap on the quantity of gold that a customer can purchase on Paytm. However, for transactions above Rs 20,000, users have to produce relevant know-your-customer (KYC) documents; for transactions above Rs. 50,000, PAN details have to be submitted. This is in line with standards set by market regulator SEBI. ALSO READ: Paytm aims to reach 4.5 billion transaction milestone by year-end
Paytm announced earlier this month that it had sold over 100 kg of gold worth Rs 30 crore. The company earns a fixed fee on each transaction based on the volume of the gold bought or sold on its platform. It is in the process of tying up with several local jewellers across the country so that consumers buying Paytm Gold can redeem it against tangible gold jewellery. And MMTC-PAMP would be delivering the gold to the shops.