Paytm's Digital Gold Business Records 2X Growth this Festive Season

Payment platform Paytm has recorded twice the growth in the digital gold transactions during the last six months with an average order value raising by 60 percent. With this, the company also announced the launch of its high-value transaction product feature which would enable the users to buy Paytm Gold up to one crore worth in just one go on the app.

The company’s statement says, "Since the beginning of this financial year, new users have increased by 50 percent and the average order value is up by 60 percent. With this, the total transaction volume on the platform has crossed the milestone of 5,000 kg."

However, the fintech has now stretched the Paytm Gold services to the Paytm Money platform, permitting the users to buy and sell digital gold on either of the two platforms. Paytm has also allowed its users to buy Paytm Gold worth up to one crore in one go on its app. But, earlier the users were only allowed to buy gold only up to two lakh in a single transaction.

Abhishek Rajan, COO, Paytm Mall says, "This year throughout the festive seasons we have managed to bring the best of deals from banks and brands. We will keep the momentum going in the coming months. Our tie-up with Citibank is helping customers add more cheer to the festive fervor by availing exclusive cashback on each transaction."

Furthermore, the company has also stated that with the present change users could be purchase better qualities of gold in a seamless and transparent manner. Alongside this, the company has also registered a steady rise in the number of customers and over 73 million people have bought Paytm Gold on the platform until now.

The fintech has also hinted that about 40 percent of these buyers are from smaller cities and towns and this year’s Akshay Tritiya saw 2.5X sales as compared to last year.

Varun Sridhar, CEO, Paytm Money states, "As the pandemic continues, Paytm's digital gold has generated massive interest from Indians who want to continue buying gold for the purpose of investment, personal use and gifting during these uncertain times, but have been restricted from going out to buy gold or meet friends and family." He further adds, “This trend will accelerate in the future, even after the pandemic ends. We have big plans for this product and major offers and promotion for digital gold may be unveiled in the near future."