Introducing Digital Gold on Paytm

On Thursday, Paytm announced that it will now enable customers to get their cashback into their Paytm Gold account. Launched in April this year, Paytm Gold is the payment behemoth’s first foray into the wealth management space. It allows users to buy gold for as less as Re 1.

Here’s how it works                                

On buying certain products on the Paytm platform, including bus tickets, movie tickets or recharges, a consumer gets a promo code which they can use to get the cashback into their Paytm Gold account instead of their e-wallet.

While offers are not standardised, the cashback depends on the product and its price. For now, it is completely subjective.

Key features of digital gold from paytm

  • Overview: Paytm users can now purchase gold online and store it in MMTC-PAMP’s highly secure vaults free of charge.
  • Gold quality: With Paytm’s Digital Gold, customers can buy 24K 999.9 Gold from MMTC-PAMP instantly
  • Storage: MMTC-PAMP instantly and store it in the country’s most secure, 100 percent insured vaults at no additional charge.
  • Delivery: Request for their gold to be delivered at their homes can be made in the form of minted coins or sell it back online to MMTC —PAMP
  • Selling: Consumers can sell it back online instantly. If the consumer wants to sell the gold, MMTC-PAMP will buy the gold back from them and the money will be transferred to the user’s bank account
  • Min transaction: Minimum transaction value is Rs 1. You can buy & sell in fractions for example. 0.1 gm or in Rupees, for example Re.1 or Re. 2 etc

Why gold as cashback    

Paytm Gold is a partnership with MMTC-PAMP, a joint venture between PAMP Switzerland and the Government of India undertaking, MMTC Ltd. The gold is stored in what MMTC-PAMP says are its 100 percent secure insured lockers. According to the Paytm, the Paytm Gold cashback initiative aims to encourage consumers to save each time they spend, thus achieving long-term wealth creation for its users.

Explaining the reason for launching cashbacks with gold, Krishna Hegde, Senior Vice President – Paytm said,

“We have observed that many of our customers were shopping and converting their cashback into pure gold. To encourage this trend further, we are introducing cashback as Paytm Gold. That means whether you are shopping online, paying utility bills or buying movie/travel tickets, you can earn pure gold kept for free in MMTC-PAMP’s secured lockers. This will transform the way the Indian consumer saves.”

Speaking at a press conference in Bengaluru, he stated that so far 175 kilograms have been transacted on the Paytm Gold platform. Additionally, the concept has gained popularity in Tier 2 cities like Kanchipuram, Thane and Ahmedabad, besides Bengaluru and Hyderabad.

While cashback in gold is an interesting take on creating a product with mass appeal, there are some things that customers need to understand by reading the fine print. For example, a legal clause in the terms and conditions of the initiative state that a ‘customer has to make one physical redemption in the first year of account opening’.

And Paytm will not store your gold forever. Another clause states the following

“MMTC-PAMP India will be the custodian (of your gold) till delivery as per your instructions or up to a period of 5 (five) years from the date of purchase…”



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