India's e wallet firm, Paytm has joined hands with with MMTC-PAMP to launch 'Digital Gold' that will allow its users to buy and sell gold through the electronic platform.
With the help of Paytm wallet , users can purchase 24K 999.9 purity gold online and store it in MMTC-PAMP's secure vaults free of charge.
The gold will be delivered at users' doorstep in the form of minted coins. Users can also sell back the purchased gold online to MMTC-PAMP.
"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 challenges they face," MMTC-PAMP Chairman Mehdi Barkhordar said.
He added that the partnership will ensure that masses can have access to high quality gold and they can also invest in gold in an affordable manner.
India is the world's largest consumer of gold. An estimated 24,000 tonnes worth USD 900 billion of gold is locked away in homes and bank lockers in India.
"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," Paytm founder and CEO Vijay Shekhar Sharma said.
He added that consumers will be able to buy gold for as low as Re 1 using their Paytm wallets.
Meanwhile, Alibaba-backed Paytm expects its platform to facilitate 4 billion transactions this fiscal, enthused by the strong uptake of digital payments in the country.
It had registered 1.5 billion transactions on its platform last year.
"We have seen significant growth and this year too, we expect to see a manifold growth to 4.5 billion. A significant part of this growth is coming from tier II and beyond cities," Paytm founder and CEO Vijay Shekhar Sharma said.
He added that cities like Jaipur, Sonipat, Vijayawada, Visakhapatnam and Durgapur were among the fastest growing for the company.
At the end of March 2017, Paytm had 218 million mobile wallet users.
Paytm has been one of the biggest beneficiaries of the government move to scrap old notes of Rs 500 and Rs 1,000 in November last year.
The company today announced partnership with MMTC-PAMP to enable consumers buy digital gold for as low as Re 1 using their Paytm accounts.
Consumers, once they buy about 1 gram of gold in their account, can also ask for the coin to be delivered to their doorstep.
(With inputs from PTI)