New Delhi: Alibaba-backed Paytm has partnered with gold refiner MMTC-PAMP to launch 'Digital Gold' that will allow customers to buy and sell gold through the electronic platform.
Using their Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in MMTC-PAMP's secure vaults free of charge. They can invest as low as Re 1 to buy the yellow metal.
They can also request for their gold to be delivered at their homes in the form of minted coins or sell it back online to MMTC-PAMP.
"Gold is the preferred form of investment for Indians, and we are making it easier for our users to invest in gold digitally," Paytm founder and CEO Vijay Shekhar Sharma told reporters here.
Customers can now buy and sell international quality gold at market-linked prices instantly for as low as Re 1 using their Paytm wallets, he added.
If the consumer wants to sell the gold, MMTC-PAMP will buy the gold back from them and the money will be transferred to the user's bank account, Sharma said.
Currently, consumers transacting over Rs 20,000 through Paytm need to provide KYC details and the same will apply to the gold scheme.
India is the world's largest consumer of gold. An estimated 24,000 tonnes worth $900 billion of gold is stocked in homes and bank lockers in India.
MMTC-PAMP chairman Mehdi Barkhordar said consumers face challenges related to purity of gold and security of storing the metal.
"This partnership will ensure that masses can have access to high quality gold and they can invest in an affordable manner," he added.
Indian government is encouraging people to buy digital/ paper gold, instead of the physical form to curb large scale hoarding.
It has also introduced a sovereign gold bond scheme that offers better returns and owners do not have to worry about security of the precious metal apart from other benefits.