Diwali is just around the corner, and today is Dhanteras when most Indians step out to buy something gold. Now, these platforms can help you do that online – with digital gold.
Before Diwali, comes Dhanteras. A day believed to increase wealth and prosperity when families and individuals across the country buy items of precious metals as a sign of good luck.
These precious metals include new utensils and pieces of silver and gold jewellery and coins. Data suggests that buying activity was more pronounced for gold and silver coins during the auspicious occasion this year.
A report in PTI states that bullion traders said sales were nearly 20 percent higher, and are expected to pick up later in the day on offers including discount on diamond jewellery, and on making charges of gold jewellery apart from other incentives.
In the national capital New Delhi, gold of 99.9 percent and 99.5 percent purity are traded higher by Rs 40 each to Rs 32,690 and Rs 32,540 per 10 gram respectively. Further, it rose by another Rs 20 on Saturday.
Sovereign gold, however, held flat at Rs 24,900 per piece of 8 gram.
This Dhanteras, here’s a look at payment platforms providing digital gold.
Last July, Indian financial payments behemoth Paytm announced the launch of digital gold on its platform, allowing users to buy Gold for as less as Re 1.
In order to make it popular, the company was offering cash back in the form of digital gold on certain products on the Paytm platform.
Paytm Gold is a partnership with MMTC-PAMP, a joint venture between PAMP Switzerland and the Government of India undertaking MMTC Ltd. The gold is stored lockers that MMTC-PAMP says are 100 percent secure and insured. Further, consumers can get the gold delivered at their doorstep.
At the time of redemption in physical deliverable product form, the customer has to pay additional manufacturing and delivery charges, and applicable taxes on the same. The redeemable product, selected from the catalogue for delivery, shall be subject to availability of stock with the MMTC-PAMP.
The Noida-based company claimed that by mid-April this year, it had recorded gold transactions worth around 80,000 tolas (approximately 800 kg) spanning 1.5 million customers. Further, the company sold 2,000 tolas of gold (approximately 20 kg) online this Akshaya Tritiya.
However, during the launch, Paytm had a legal clause in the terms and conditions of the initiative that a ‘customer has to make one physical redemption in the first year of account opening’.
What’s new this Dhanteras:
In a statement in October, Paytm said that it was offering Rs 100 crore in Paytm Gold to celebrate the festive spirit with its users and to further accelerate Paytm UPI adoption.
Flipkart-owned payments app PhonePe launched its gold category in December 2017, allowing users to buy and sell certified 24-carat gold on the app.
PhonePe was the first payments app to offer a gold marketplace to its customers. It partnered with both SafeGold and MMTC-PAMP India’s accredited gold refineries.
Just like Paytm, gold purchased on PhonePe is physically deposited into a vault and will be fully insured. If a customer needs physical gold, they can ask for it to be delivered to their doorstep.
This May, the Bengaluru-based company claimed that it sold over 250 kg 24-carat gold on its platform since the launch of the product in December. PhonePe added that it sold over 45 kg gold worth over Rs 15 crore this Akshaya Tritiya.
What’s new this Dhanteras:
To boost sales this festive season, PhonePe is giving exclusive offers to customers where they can get up to Rs 6,000 cashback on gold purchases.
Calling it ‘Gold Dhamaka’, the company said that it will bring assured rewards where 100 lucky customers have a chance to win a gold chain on purchases worth Rs 300 or more from SafeGold.
This Gurugram-based digital payments platform launched its digital gold offering last month.
Partnering with SafeGold, the category allowed MobiKwik users to buy and sell 99.5 percent purity, 24-carat gold on the app, starting as low as Re 1. App users have the liberty to buy any amount of gold and sell it any time after 24 hours of purchase.
Users can buy or sell gold in terms of rupees or grams. After purchasing, the gold will be added to the customer’s ‘MobiKwik Gold’ account. In case of selling it, customers can choose either the MobiKwik wallet or a bank account linked via UPI for the money transfer.
What’s new this Dhanteras:
Earlier today, MobiKwik announced that customers can now convert their digital gold to gold jewellery from CaratLane, both online and at any of their stores in India. In a first, this new offering in the ‘gold’ category will enable users to purchase gold jewellery of their choice, against their digital gold balance.
Further, as a part of the special Diwali offer, MobiKwik users can avail an additional flat Rs 1,000 off on the purchase of jewellery against their balance.
tmw (The Mobile Wallet)
Around May this year, Mumbai-based tmw launched tmwGold in collaboration with SafeGold. The company allows customers to buy or sell 24-carat gold (99.5 purity) digitally.
It allows customers to buy, sell gold and store them digitally in virtual secure vaults.
During the launch, tmw said that consumers get a gold certificate on every purchase. The gold gets stored in a virtual vault and consumers have the flexibility to convert ‘tmw reward points’ into gold.
Tarush is driven towards delivering unbiased and accurate reportage while engaging with as many mediums as possible to narrate a fresh perspective. Working for the past few years in the digital space with YourStory, he has covered the Indian technology ecosystem extensively, focusing on new age Fintech companies, while building strong connects within the industry.