Digital gold paves way for Paytm’s entry into small towns, semi-urban areas

17Jul - by The Print Staff - 0 - In News

MUMBAI: Cashing in on Indians’ fondness for gold, Paytm Payments Bank is using its Digital gold savings product to make inroads into small towns and semi urban locations.

Places like Kanchipuram, Burdwan and Dhanbad, which are not the usual target business areas for digital wallet companies, are showing increased transactions on Paytm.

Paytm is also in the process of 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.

Paytm, which is mostly identified as an urban youth-centred payments solution provider, is making a shift to payments bank. Products like Digital Gold have helped the wallet company make people use Paytm for their savings activities as well.

Hegde said 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 had Digital Gold Paves Way for Paytm’s Entry into Small Towns, Semi-urban Areas Places like Kanchipuram, Burdwan and Dhanbad are showing increased transactions on Paytm launched the digital gold product on Akshaya Tritiya this year and has sold more than 100kg of gold through its wallet application.

The payments company has been making these products available through its partnership with the government-promoted precious metal processing facility, MMTC-PAMP.

“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.

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