As we all know there are so many things that can be bought for a rupee, a candy is a good example for this. But what if you could buy gold with that rupee? Yes, you heard right. Alibaba-backed online marketplace company Paytm is in tie up with the MMTC’s Swiss Venture PAMP SA, is making it possible for the very first time such initiative anywhere in the world.
On Thursday the Paytm announced the launch of ‘Digital Gold’, it is vertical which allows more than 200 million users to buy, store and sell the gold instantly. The founder and the Chief Executive Officer Vijay Shekhar Sharma referred to the new offer as a wealth management product that would be a part of its proposed payments in the bank, the final nod from the Reserve Bank of India (RBI) is still awaiting.
The Chief Executive Officer Vijay Shekhar Sharma said that “Customers can now buy and sell international quality gold at market-linked prices instantly for as low as Rs 1 using their Paytm wallets. If a user wants to sell the gold, MMTC-PAMP will buy the gold back and the money will be transferred to his bank account”.
At a time when the purchased gold can be stored in MMTC-PAMP’s secure vaults free of cost, a consumer can also request for the home delivery as well of minted coins or sell it back online instantly.
While the time the company did not elaborate much on this, it may get into gold loans as well. It is learnt to be already working on the plan. Estimate suggest that the gold worth $900 billion is stocked in the homes and bank lockers in India. The Paytm, which is on a rapid expansion mode, is in talks for a fresh round of funding that could be materialised within the next three weeks. The company is looking to raise $1.5 billion from Japan’s SoftBank, it is learnt. However, Sharma refused this statement.
The Shekhar Sharma also pointed out that the company would need around Rs 10,000 crore of investment in banking and finance for over three years. The company has been burning a lot of money as well at the time of growth path. In the fourth quarter of FY2017, the company spent over $105 million on the various projects, including the expansion in Canada. The payments banks can accept the deposits from individuals and small businesses of up to Rs 1 lakh per account. To deepen the financial inclusion in the country, the RBI had allowed the small finance banks and payments bank to start the services.
According to the close source, the company also received the interest from US-based high net worth individuals for investing in the company. While the Shekhar Sharma did not comment on the discussions, he said there is interest from across geographies for putting in funds. The Paytm has been one of the biggest beneficiaries of the government move to scrap old notes of Rs 500 and Rs 1000. At present, the Paytm operates the mobile wallet and e-commerce marketplace. With the 1.5 billion of transactions on its platform, the company now aims to cross the 4.5 billion of the mark this year. He said that “We have seen significant growth and this year too, we expect to see manifold growth to 4.5 billion. A significant part of this growth is coming from tier-II and beyond cities”.
He also added that the cities like Jaipur, Sonipat, Vijayawada, Vishakapatnam and Durgapur were among the fastest growing for the company. At the end of March this year, the Paytm had 218 million of mobile wallet users.
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