On Thursday, Paytm announced a partnership with MMTC-PAMP through which it will offer a new digital gold investment option in its mobile app. The feature will only be available in India, where gold is one of the most trusted wealth management resources.
Locals will be able to purchase as little as Re 1 of digital gold, while the gold gram rounds the Re 3,000 mark. People all over the world have trusted the precious metal for ages given its stable market value and acceptance in trades.
Digital payment platforms are innovating more and more regarding what can be done with technology. Mastercard recently introduced a new biometric bank card, while Apple is rumored to be developing a new money transfer system and app.
How will Paytm’s digital gold purchases work?
MMTC, a metals trading company owned by the Indian government, and PAMP, a Swiss refiner of precious metals, will supply the precious metal. Transactions and storage will be handled by Paytm, which is backed by the Chinese giant Alibaba.
Paytm is a digital payments platform that uses a virtual Wallet to store and transfer money between accounts of the same system and affiliated banks. Users can pay for services and goods directly from Paytm in many establishments partnered up with the company.
Here it is! Now, buy #DigitalGold on Paytm.
— Paytm (@Paytm) April 27, 2017
Now, there is yet another way for Indians to manage their money online. Once a user logs into their account through the app, there will be a new Gold menu under the Locker tab. There, people can buy, sell, or see how much gold they have saved.
The platform offers gold in two tiers of purity: 24 and 22 karats. The current rate established by Paytm is Re 3,001.4 and Re 2,751.7 per gram of 24K and 22K gold respectively.
Much like the cash you have in your regular bank account, the gold you buy will be digital. They will be able to check how much gold they have in Paytm vaults or lockers, but they will also have the option to have it delivered physically to their associated addresses.
MMTC-PAMP will issue 1, 2, 5, 10, and 20-gram coins for those who want to have their gold as tangible currency. Delivery fees per gram are Rs 351, but Paytm storage is free of charge, and they buy it back from those who want or need to get back their investment.
Founder and CEO Vijay Shekhar Sharma held a launch event in India on Thursday on the eve of Ashkaya Tritiya, a traditional holiday associated with prosperity and good fortune:
“GOLD IS THE PREFERRED FORM OF INVESTMENT FOR INDIANS, AND WE ARE MAKING IT EASIER FOR USERS TO INVEST IN GOLD DIGITALLY.”