Despite one of the most stringent lockdowns imposed in India in the wake of the COVID-19 lockdown, digital payments applications like PhonePe, Amazon, Google, and Alibaba-backed Paytm saw a boost in their businesses.
Now, with the ‘digital gold’ becoming popular, the payments apps are competing with each other for the biggest share of the new market.
To woo the customers to purchase gold on instalment basis across the country, including from small towns and cities, the payment apps are giving lucrative offers. These firms are also helping in deliver the gold products on time for occasions such as marriage or festivals.
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"Gold holds great significance amongst Indians. Considering the reach leading fintech players have among millennials this is certainly a battleground to look out for," Business Standard quoted EY India partner Ankur Pahwa as saying.
Citing the transparency in the deals, Pahwa added the service of digital gold provides safety, security, and flexibility to invest as little or much as customers desire. Apart from this, the payment apps also provide options to convert it to physical gold post-investment period.
PhonePe has emerged to be the largest platform for buying 'digital gold' with over 35 per cent market share. So far, customers from over 18,500 pin codes across India have bought gold on PhonePe, mainly from small towns and cities.
"We want to make it easier for people to buy gold like buying from the offline market and also get it delivered," the business daily quoted PhonePe CEO Sameer Nigam as saying. PhonePe had launched the gold category in December 2017.
Beside PhonePe, customers have also bought 'digital gold' on payments apps like Amazon Pay, Google Pay, and Paytm.
"SafeGold makes saving in gold as convenient as possible, and we have an exciting roadmap of product features ahead, including delivery and exchange for jewellery," Amazon spokesperson said.
Google Pay too launched digital gold as a category in 2019. Under this, customers can buy 99.99 per cent 24 karat gold within the app, which is backed by MMTC-PAMP India.
Meanwhile, Paytm claimed that over 73 million people have bought Paytm Gold on the platform till now, out of which 40 percent belong from small towns and cities.
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