On the occasion of Akshaya Tritiya, Paytm announced that it has collaborated with MMTC-PAMP to launch Digital Gold, enabling Indians to buy, store and sell pure gold instantly. Paytm users can now purchase gold online and store it in MMTC-PAMP’s highly secure vaults free of charge. They can also request for their gold to be delivered at their home in the form of minted coins or sell it back online instantly.
Indians have traditionally bought gold at high fixed denominations, and without visibility to market linked prices. Purity, security, and storage charges are some of the issues that the investor has to deal with, leading to high friction costs while investing in gold. With Paytm’s Digital Gold, customers can buy 24K 999.9 Gold from MMTC-PAMP (India’s only Internationally Accredited Refinery) instantly and store it in the country’s most secure, 100% insured vaults at no additional charge. Consumers can buy gold for as little as Re. 1, thus democratizing access to a wider set of customers as it will make investing in gold more affordable.
Speaking on the launch, Vijay Shekhar Sharma, Founder & CEO – Paytm said, “Gold is the preferred form of investment for Indians, and we are making it easier for our users to invest in gold digitally. With this product, our customers can buy and sell international quality gold at market-linked prices instantly. The goal is to offer complete flexibility in deciding the amount they want to invest, and enable consumers to develop habit of saving regularly in digital gold for long-term wealth creation. We are confident that this solution will help millions of Indians to buy and sell 24K 999.9 pure gold with utmost confidence and security.”
Mehdi Barkhordar, Chairman at MMTC-PAMP India Pvt Ltd said, “As India's first and only internationally accredited gold and silver refinery, we are proud to be placing India in its deserved leadership position in the global bullion market. Our partnership with Paytm provides every Indian access to high quality, 24k 999.9 pure gold in a convenient and transparent manner.”
Indians currently hold more than 24,000 tonnes of gold worth $ 900 Bn as per World Gold Council estimates. Indian households bought more gold in 2016 than any other financial asset despite the challenges of buying pure gold and storing it. It is clear a large market for a product that combines convenience with affordability.