Conventional banking channels had launched different gold scheme based financial products but now the new entrants into online financial businesses and NBFCs are also jumping into this segment with their own unique offerings. Paytm, for example, has come up with two products, Gold Gifting and Gold Savings Plan.
Under Gold Gifting, customers can send 24K 999.9 Purity Gold to each other instantly and Gold Savings Plan is an affordable means to save pure Gold regularly for long-term wealth creation.
Gold Gifting allows users to buy the precious metal in small components as there is no minimum stipulation as far as the investment is concerned. It is in some way similar to the investments through the SIP route. Paytm customers can keep saving in the form of gold and they can withdraw it also any time they choose.
The gold belonging to the customers will be stored in the lockers maintained by MMTC PAMP and whatâ€™s more the storage comes free to the customers. You canâ€™t possibly think of a cheaper and safer way to buy and store gold. The MMTC PAMP lockers are 100% insured and should be treated as secure. Customers can keep themselves updated on their wealth through the Gold Passbook, an online tool.
The digital payments major launched Paytm Gold in April 2017, and claims that more than 60% of all Gold purchases on our platform are from tier II & III cities with millennials constituting the majority.
It sees this segment as its contribution to develop the healthy habit of saving among Indians. Paytm will further expand this wealth management service space by leveraging its other arm Paytm Money, to offer other investment and wealth management services to its customers.
Interestingly, Paytmâ€™s model has been followed by rival Flipkart through its PhonePe app where gold can be bought and for physically handling the metal, Flipkart has tied up with SafeGold.