Paytm to resume physical gold deliveries after 8-month hiatus
What's the story
Paytm, a leading mobile payments company, has announced its plan to resume physical gold deliveries for digital gold investors from next month. The move comes ahead of Akhaya Tritiya, an auspicious occasion for purchasing gold. The company's decision comes after a temporary suspension of physical gold redemption since last August.
Infrastructure upgrade
Revamping digital gold experience
Paytm has been working on revamping its digital gold experience to provide better redemption options. The company said in a statement, "We have been revamping the overall digital gold experience to further enhance redemption options." As part of this upgrade, physical redemption and delivery coverage of digital gold on Paytm will be available across over 12,000 pin codes starting mid-April.
Reason for pause
Why was physical gold redemption suspended?
The fintech giant had temporarily suspended physical gold redemption last August, without any explanation. However, the company clarified that this was done to revamp its infrastructure and logistics for a seamless experience across the country. Paytm also said that customers have always had the option to sell their gold at current market rates.
Market growth
Digital gold purchases via UPI hit record high
In January 2026, digital gold purchases through UPI reached a record high of ₹3,926 crore and 219 million transactions. This is a four-fold increase from January 2025. Over 90% of all digital gold was bought via NPCI-operated UPI, India's most popular digital payment method. The rise in gold prices and its status as a safe haven have fueled interest in digital gold among customers.
Strategic alliance
How digital gold works on Paytm
Paytm has partnered with MMTC-PAMP, a government-owned company, to tokenize the value of gold in digital gold transactions. Every time a customer buys digital gold on these apps, an equivalent amount of physical gold is bought and stored in the safe vaults of MMTC or SafeGold. This process is audited by an independent auditor to ensure that these apps purchase the physical gold of the same quantity.