e-commerce giant Amazon's payment services arm Amazon Pay has come out with its latest feature, an option that allows customers to buy digital gold, Mint reported. In this hassle-free alternative to buying physical gold, people can invest as little as Rs 5 to buy the yellow metal via this digital option.
Amazon Pay has tied up with SafeGold, the retail brand of Digitial Gold India Pvt, to launch this service for users. SafeGold offers 24 carat gold of 995 purity (99.5 percent pure).
However, the digital gold offerings are not a new idea in the market. Several payment firms like PhonePe, Paytm, MobiKwik and Google Pay, among others, have been in the game for some years now. While Google Pay started the offering only in April last year, Paytm and PhonePe had rolled out their respective digital gold offerings back in 2017.
Online wallet company Paytm allows its users to receive cashbacks on any transaction in the form of Paytm Gold. It had launched its Digital Gold product in October 2016 as a pilot project. While some companies like Paytm provide doorstep delivery of gold in the form of coins, Amazon Pay is yet to enable that option.The sale of gold via the digital route is a fairly recent phenomenon in India, where people have traditionally been used to purchase physical gold, more so in the form of jewellery and for gifts. India has also been one of the biggest markets for gold, with growing wealth driving demand for the precious metal.