Dematerialisation & Democratisation of Gold, the Paytm way

Paytm was quick on its feet to be the forerunner in PM Modi’s vision of reducing India’s reliance on cash. The surge in the usage of Paytm’s e-wallet after demonetization resulted in payment mobility which has undoubtedly brought about a paradigm shift in a manner in which money is used for payments and transferred in India. Having received their license from Reserve Bank of India in 2015, Paytm didn’t stop there.

Unlike the huge one page newspaper ads which announced Paytms platform as a clear leader for digital payments the day after demonetisation, the new product - Digital Gold was launched quietly in collaboration with accredited refinery MMTC-PAMP, which allows users to buy, sell and even store gold in secure vaults -- all of it at no additional cost or transaction fee, barring a small amount that buyers pay as making and delivery charge. There is immediate and live access to:

a) The gold balance in your Paytm account

b) The purchases effected from time to time and current online live rate

c) Request delivery on-demand at customized packing

d) Sell online anytime

Paytm Gold makes it possible for a villager with a smartphone in any part of the country, a housewife in Bangalore or a financial investor in Mumbai to participate, instantly in adding gold to their portfolio. Consumers can buy gold using ‘Paytm wallet’ for as little as Re 1, thus democratising access to a wider set of customers as it will make investing in gold more affordable, with no boundaries set for the purchase. Unlike other prominent gold bonds / physical gold purchase which require ample paperwork, this transaction can be availed at your fingertips via an electronic platform without the hassle of storage concerns in a fraction of a minute.

Translating to 100% insured security of the purchased yellow metal over the rudimentary method of buying, selling and storing gold, Paytm has taken a huge transformation with the release of their ‘Paytm Gold’ vertical. The fact that the product is stored digitally (with an option to convert it into delivery at any time) allows dematerialisation of gold which reduces holding cost, conversion spread loss and enables immediate transaction.

With this beginning of ‘Wealth Management’ at Paytm, in a win-win situation for consumers, future plans include making this gold, or worth of gold available for making corresponding purchases on the Paytm Mall platform. Other plans include engaging ‘Tanishq’ and similar jewelry-makers to sell finished jewelry to Paytm’s gold buyers if a buyer wants to convert the stored gold to ornaments. This can revolutionalise the way gold is bought, sold, used and stored in the country and be a large book for Paytm to handle as it moves away from being a mere wallet.

#PaytmGold #Gold #Paytm #Phoenix #PhoenixFund #AmitKhanna #Amit #Khanna #Invest #DematGold