According to reports, Paytm's Digital Gold, which was launched on April 27 this year, has grown 100% month-on-month in sales volume.
Gold is usually considered as a part of the traditional investment portfolio, something that didn't interest millennials but surprisingly, in this case, the radical growth was spearheaded by customers within the 25-35 years age bracket.
Here's all about it.
Paytm Digital Gold rides high on millennial customers
What is Digital Gold?
Paytm's Digital Gold is the result of a tie-up with the government-promoted MMTC-PAMP, which enables it to sell 24 karats 999.9 International standard purity gold on its platform.
Consumers can buy gold in small denominations and until it reaches 1gm or more, it is kept secure in MMTC-PAMP vaults. Customers can also sell their reserved gold after paying a Rs. 10 convenience fee.
How does it work?
After the total amount of gold bought reaches 1gm or more, consumers can get it delivered as coins or bars, in exchange for a nominal making charge.
A 1gm gold coin attracts making and delivery charge of Rs. 351, 2gm coin costs Rs. 377, 5gm coin takes Rs. 503, 10gm gold bar goes for Rs. 629 and a 20gm bar costs Rs. 781.
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Why is it a millennial favorite?
The amount of flexibility offered by Paytm for buying and selling gold is what attracts young adults. One can make it a part of their investment portfolio by spending a weekly investment of as low as Rs. 11 and over the years it would accumulate a tidy sum.
The mobile payments provider has managed to sell around 100kg digital gold since its launch.
Going ahead in full gusto
Digital Gold is slowly emerging as a savings option for Indian millennials due to its convenience.
Paytm SVP Hegde quipped that products, such as digital gold, enhance the slickness quotient of a platform, which results in higher repeat users and since it has managed to gain consumers' trust; now it helps to promote other financial products or services that the platform has to offer.
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