PhonePe stands largest platform for buying digital gold with 35% market share
PhonePe has emerged as the largest platform for buying 'digital gold' with over 35 per cent market share. The company, in competition with Amazon Pay, Google Pay and Alibaba-backed Paytm, also said that it has seen a more than 6X jump in the volume of gold sold in the festival season this year.
‘’PhonePe saw record sales for Gold this month on the back of the festive season,” said Terence Lucien, head, Mutual Funds and Gold, PhonePe.
According to him, the customers are increasingly opting for digital purchases due to the ease of access, affordability and safety accentuated by the rising trust in payment platforms like PhonePe.
“PhonePe has one of the best-designed platforms to buy gold and we are constantly innovating and adding new features,” said Lucien.
A reminder feature to help customers build the habit of purchasing gold every month was introduced by PhonePe recently adding a milestone feature to help motivate customers to achieve their saving goals by investing regularly.
PhonePe had introduced the gold category in December 2017. Over the last three years, it has partnered with gold and silver products providers Safe Gold and MMTC-PAMP to get users across the country to buy gold online. The company say the gold bought on PhonePe is 24K real gold, can be bought anytime, according to the customer’s budget, starting to even as low as Re 1.
Customers can also opt for the physical delivery of gold and get doorstep delivery in the form of coins or bars, starting as low as half a gram. Customers from over 18,500 pin codes across India have so far bought gold on PhonePe with over 60 per cent of customers from small towns and cities.
PhonePe’s rival Paytm recently said it has recorded 2 x growths in the digital gold transactions during the last six months. Since the beginning of this financial year, new users have increased by 50 per cent and the average order value is up by 60 per cent. With this, the total transaction volume on the platform has crossed the milestone of 5,000 kg. The company has now extended the Paytm Gold services to Paytm Money platform, enabling users to buy and sell digital gold on any of the two platforms.
The company has also announced the launch of its high-value transaction product feature. Here users would be able to buy Paytm Gold worth up to Rs 1 crore in one go on its app. Earlier it was possible for users to buy gold only up to Rs 2 lakh in a single transaction.
"As the Coronavirus (Covid-19) pandemic continues, Paytm's digital gold has generated massive interest from Indians,” Varun Sridhar, chief executive of Paytm Money, had said. “They want to continue buying gold for the purpose of investment, personal use and gifting during these uncertain times, but have been restricted from going out to buy gold or meet friends and family.”
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