Within a few months of launching ‘Digital Gold’, Paytm Payments Bank plans to push the product in small towns and semi-urban areas in India.
In April this year, Paytm had partnered with gold refiner MMTC-PAMP to launch ‘Digital Gold’ that will allow customers to buy and sell gold through the electronic platform.
According to the bank, it has observed a steep rise in ‘Digital Gold’ transactions in places like Kanchipuram, Burdwan and Dhanbad; the company sees it as a great opportunity to tap the market in smaller cities. It is also tying up with major jewellers across India to make digital gold available to its customers in the form of minted coins or jewellery.
“We are seeing increased traction among customers with districts like Godavari, Thiruvallur, 24 Parganas and others emerging as the locations with the highest demand. This product has definitely helped us make greater inroads into rural India,” said Krishna Hegde, senior vice-president, Paytm Payments Bank talking to ET.
He added the company has been seeing a 150 per cent month-on-month growth in sales volumes, number of users and number of transactions across the country.
Paytm launched the product on Akshaya Tritiya (during April) and claims of selling more than 100kg of gold through its wallet application then.
“Widespread interest in tier-II and tier-III cities has prompted us to scale up our marketing activities and increase our set of serviceable pin-codes to make the product available at every nook and corner of the country without any limitations,” Hegde said.