Digital payments company PhonePe on May 25 launched a feature on its platform that enables users to make investments in gold using the Unified Payments Interface (UPI). With the new addition, users will now be able to sign up for Systematic Investment Plans or SIPs in high purity 24K gold of a specified amount every month.
PhonePe informed that the users can start investing in gold with a minimum amount of Rs 100 per month and continue to invest small amounts regularly to build their gold savings systematically.
“As Indians look at finding smart ways to buy gold, we are happy to provide our users the option of setting up a Gold SIP through UPI. PhonePe’s Gold SIP will help users build their long-term gold investments in a hassle-free way by allowing them to buy the purest 24K gold through small and regular monthly investments,” Terence Lucien, Head of Investments at PhonePe, said.
The company informed that with the UPI SIP, users will have complete control over their gold investments and can sell the gold at any time getting a direct credit to their bank account. Interestingly enough, PhonePe said that the customers can also choose to redeem their gold in the form of coins and bars, which will be delivered to their doorstep.
The fintech claims that Gold SIP on PhonePe makes buying gold convenient for its users with the help of UPI. “The user has to just select the gold provider, mention the monthly investment amount, authenticate with the UPI PIN and it’s done! Setting up a Gold SIP is a one-time, hassle-free process and all subsequent investments are completely automated,” a statement on the launch said.
The company also believes that since Gold SIP is a periodic investment, users don't need to continuously track Gold prices in order to make an investment decision. “Investing a fixed sum of money towards gold at specific intervals could reduce the user’s average cost of investment in the long run,” it said.
Using the feature, customers can accumulate their gold in insured bank-grade lockers maintained by PhonePe’s partners, MMTC-PAMP and SafeGold.
PhonePe has followed the likes of Paytm and other fintech companies in adding this feature to its platform.
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