Paytm sees gold transaction worth Rs 120 crore in 6 months, over 1 million buyers till Dhanteras

Alibaba-backed digital wallet company Paytm on Wednesday said gold transactions worth Rs 120 crore have been made within six months of launch of sales of the yellow metal on its platform. The number of buyers crossed one million mark on the Dhanteras day, Paytm said.

The e-wallet company witnessed 12 per cent surge in gold sales on Dhanteras, which was celebrated on Tuesday across the country. Dhanteras is considered an auspicious day to buy gold, silver and other metals, according to Hindu calendar.

"More than 60 per cent of Paytm Gold sales were from smaller cities and towns, with southern and eastern states like Tamil Nadu, Maharashtra, Karnataka, Andhra Pradesh, Jharkhand and West Bengal registering the maximum demand," Paytm said in a statement.

A landmark of over a million customers transacted the yellow metal worth Rs 120 crore on its platform within six months of launch, it noted.

A majority of the customers purchased gold worth up to INR 500, while more than 70 per cent customers were millennials - pointing at an increasing trend of consumers choosing Paytm Gold as the preferred method for long-term savings, it said.

"Gold gives us an extraordinary opportunity to create a wealth solution that is trusted and used by consumers across every nook and corner of the country," Paytm senior vice president Nitin Misra said.

Paytm partnered with India s only internationally accredited refinery MMTC-PAMP to launch Paytm Gold on its platform. This will allow customers to buy 24 carat 999.9 pure gold online and store it in the MMTC-PAMP s most secure, 100 per cent insured lockers at no additional charge.

Customers can also request this gold to be delivered at their homes in the form of minted coins or sell it back online to MMTC-PAMP at transparent market-linked prices.

While gold saw some buying on auspicious occasion of Dhanteras, it fell by Rs 140 per 10 gm mainly due to profit-booking in the national capital on Tuesday. The weak trend overseas due to dollar strengthening against major currencies further eroded the appeal of the metal as a safe haven and also contributed to the fall in the prices. In Mumbai, the prices fell by Rs 50 for 10 gram of 22-carat gold, and by Rs 55 to Rs 31,854 per 10 gram of 24-carat gold. In Ahmedabad, spot gold was trading at Rs. 29,708 per 10 grams with a loss of 0.54 per cent at the Multi-Commodity Exchange (MCX).

Finance Minister Arun Jaitley on Tuesday launched gold options trading on MCX. "This marks a very important evolution in trading of yellow metal itself. It hedges all risks by giving them (traders) the option of futures," Jaitley said right after launching the options trade on the auspicious day of Dhanteras.

"I am sure more it formalises, better it is for consumers, jewelers and those trading in this. That's in consonance with the business environment for future that we see for us," Jaitley added.

with PTI inputs