Consumers can now buy 'digital gold' using Paytm

New Delhi: Alibaba-backed Paytm has partnered with MMTC-PAMP to launch 'Digital Gold' that will allow customers to buy and sell gold through the electronic platform.

Using their Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in MMTC-PAMP's secure vaults free of charge.

They can also request for their gold to be delivered at their homes in the form of minted coins or sell it back online to MMTC-PAMP.

"Indians have traditionally bought gold at high fixed denominations, and without visibility to market linked prices. Purity, security, and storage charges are some of the challenges they face," MMTC-PAMP Chairman Mehdi Barkhordar told reporters here.

He added that the partnership will ensure that masses can have access to high quality gold and they can also invest in gold in an affordable manner.

India is the world's largest consumer of gold. An estimated 24,000 tonnes worth USD 900 billion of gold is locked away in homes and bank lockers in India.

"Gold is the preferred form of investment for Indians, and we are making it easier for our users to invest in gold digitally. With this product, our customers can buy and sell international quality gold at market-linked prices instantly," Paytm founder and CEO Vijay Shekhar Sharma said.

He added that consumers will be able to buy gold for as low as Re 1 using their Paytm wallets.