Paytm Targets 5-Fold Growth in Gold Sales During Dhanteras, Diwali

Earlier this year Paytm had partnered with gold refiner MMTC–PAMP to allow consumers to buy gold through its platform.

Written by: India.com Business Desk

Updated: October 16, 2017, 12:10 PM IST

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New Delhi, October 16: Diwali is just around the corner and to make the most of this festive season, digital payments major Paytm is leaving no stone unturned to cater to the gold needs of its customers. With all the efforts working well, Paytm expects a five-fold growth in gold sales during Diwali and Dhanteras this year. Paytm, a mobile wallet company widely used by people to carry out a number of day to day transaction plans to increase its business during Dhanteras and Diwali this year. Earlier this year Paytm had partnered with gold refiner MMTC–PAMP to allow consumers to buy gold through its platform.

After teaming up with MMTC-PAMP, Paytm allowed consumers to buy gold for as low as Re 1. Under the partnership, Paytm wallet holders could purchase 24 karat, 99.9 per cent purity gold online and store it in MMTC–PAMP secure vaults free of charge. They can sell their accumulated gold to MMTC–PAMP at live market prices instantly or choose to get it delivered at their doorstep in the form of gold coins.

Paytm now plans to invest Rs. 10 crore in marketing to bring more customers on board. Nitin Misra, Senior Vice President, Paytm said, “India loves gold, and during festivals like Dhanteras, this love manifests itself more than ever as millions of our fellow countrymen purchase gold”. He added saying that Paytm has witnessed an initial surge in demand and expects this to grow further during Dhanteras and Diwali.

Paytm witnesses nearly 2 million monthly transactions for Paytm Gold. It is offering 3 per cent extra gold-up to Rs. 4,444 on a minimum purchase of Rs 10,000. Misra was quoted by PTI saying that customers purchase gold during auspicious occasions and grabbing this opportunity, the company is expecting 5 x growths in gold sales (number of transactions) during the upcoming Dhanteras and Diwali. The Vice President pointed out that the firm will also invest Rs. 10 crore in marketing to reach out to customers in small cities and educate them about the flexibility, security and transparency of buying gold on the platform.