PhonePe, the digital payments company of Flipkart, has sold over 250 kgs of 24K gold during the period of last 5 months. PhonePe claims to become the biggest destination for online gold sale with over 90 million downloads. The PhonePe app also claims to have the highest number of merchant UPI transactions in India and has seen over 400 percent growth since its launch in December 2017.
Recently PhonePe entered into a partnership with SafeGold and MMTC-PAMP for selling gold online in India. Through the app PhonePe users can choose to buy certified 24K Gold of 99.5% purity with SafeGold and 99.99% purity with MMTC-PAMP, for as low as Rs 1.
During Akshaya Tritiya last month, PhonePe registered over 45 Kgs of gold transactions worth over Rs 15 crore. The company states that 200% growth was seen in gold purchased through UPI and saw purchases for amounts as high as Rs 1 lakh through the app.
Karthik Raghupathy, Head of Strategy, PhonePe said, “We are delighted that an unprecedented number of users across India chose the PhonePe app to buy gold this year. We also saw the average ticket size of gold go up during the festive season which is a strong indicator of customer trust on the PhonePe platform.”
Most of the users who are buying gold on the PhonePe platform are young belonging to the age group of 25-40 years. The purchase is coming not only from metro cities but also from Tier 2 and 3 locations also including Andhra Pradesh, West Bengal, Gaya and Hisaar.
All gold prices are linked with international rates and one also has the option to choose to get physical delivery of the gold. As per a recent report by the World Gold Council, the demand for Gold as an investment is growing by 18% every year.
Apart from PhonePe, there are other companies such as Paytm and Motilal Oswal Financial Services which are currently selling gold online in India.