Betting on Indian’s love for that yellow metal, Paytm now will offer cash back bascially in the form of gold on its platform. The Alibaba-backed company which had started its digital gold business about two months back. In official partnership with MMTCPAMP, witnessed a major significant chunk of its users opting to usually buy gold on its app using their cashback
Mobile wallet company Paytm now will offer consumers the added option of receiving ‘digital gold’ as cashback on their transactions.
This will combine the spending and saving experience along with an asset. That is much close to the hearts of Indians, said in a statement.
This is bascially what prompted Paytm to enable gold as cashback. Started in 2008, MMTCPAMP is bascially a JV between Metals and Minerals Trading Corporation of India (MMTC) and PAMP of Switzerland.
Paytm To Offer ‘Digital Gold’ As Cashback On Transactions
Paytm claims to have sold as much as 175 kg of gold very since launching this business. It is also in talks with the jewellers across the country. To enable consumers who can also use the gold for making jewellery. The gold business was just started as an anchor for the broader plan of building a wealth management business.
The company greatly aims to encourage the habit of saving each time they spend. Thus greatly achieving long-term wealth creation for its users. Accumulated gold can also be delivered or sold back to MMTC PAMP instantly.
Customers will usually receive the option to opt for a special promo code for which will enable them to convert their cashback into Paytm Gold, it said.
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“For every transaction happen on Paytm, you will be given the option of opting for regular cashbacks or the gold. We have seen a major significant uptick in this business. With regular growth doubling in the last month,” said Krishna Hedge SVP, Paytm.
He said the ‘partnership with jewellery shops’ work is usually in progress. And likely would take some time before the option is officially rolled out. More than 60% customers of Paytm users are opting to buy. And also accumulate gold instead of selling or requesting the delivery, the company said.
Paytm is also looking to bascially roll out loan-based products following this year. As the company looks to build a very sizeable wealth management business. Users can buy gold for as low as Re 1 and then can sell as many times after accumulating it in their accounts. For physical delivery of gold, a user must accumulate at least a gram of gold.