Paytm records 2X rise in digital gold business with transaction of 5,000 kg
Paytm has also increased the transaction limit of digital gold to Rs 1 crore and expects current momentum of high growth to continue.
Paytm has registered a 2X growth in digital gold transactions over the last six months with 75 million customers transacting 5,000 kg of this precious metal.
According to the fintech unicorn, since the start of this financial year, new users have increased by 50 percent and the average order value is up by 60 percent. 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.
This increase in digital gold transaction also reflects the festive season of the country with Diwali just around the corner and pandemic of COVID-19 restricting physical movement of people.
The fintech company has also launched a high-value transaction product feature on its platform where users can buy Paytm Gold worth up to Rs 1 crore on its app. Previously, one could purchase only up to Rs 2 lakh in a single transaction.
Paytm Money CEO Varun Sridhar said, “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.”
Varun expressed confidence that the current trend will accelerate even after the pandemic subsides give the ease and accessibility features of digital gold.
According to the company, 40 percent of the buyers of digital gold are from smaller cities and towns reflecting on how consumers are considering digital gold as a serious investment option. During Akshaya Tritiya this year, the sale was up by 2.5X when compared to last year.
The company said its digital gold is 100 percent secure as it comes from MMTC-PAMP, among the world’s most advanced gold and silver refining and minting facilities, set up as a joint venture between India’s MMTC (a Government of India Undertaking) and Switzerland’s leading bullion brand PAMP SA.
Edited by Saheli Sen Gupta