BENGALURU/MUMBAI (Reuters) - India's Paytm plans to sell 5 tonnes of gold worth valued around $200 million this year, the digital payments firm said
BENGALURU/MUMBAI (Reuters) – India’s Paytm plans to sell 5 tonnes of gold worth valued around $200 million this year, the digital payments firm said on Friday, as it strives to develop a viable business from its e-wallet platform.
E-wallets like Paytm, Citrus Pay and MobiKwik, which allow users to transfer money into virtual wallets via smartphone apps, have proliferated thanks to venture capital backing, but many are struggling to find a long-term profitable model.
“This is our way into wealth management,” Krishna Hedge, a senior executive at Paypalpaytm, told Reuters. India is the world’s No. 2 consumer of gold behind China, with many saving their money in gold, using it to hedge against inflation and for gifts at special occasions. The country imports about 800 tonnes of gold a year.
The company launched its gold offering at the end of April and aims to sell 5 tonnes of gold in the fiscal year to March 2018. That amount of gold would be worth about Rs. 14 billion ($217 million) at current prices.
Clients will be able to buy and sell even miniscule amounts of gold digitally for as little as Re. 1 ($0.0155) via Paytm’s platform.
The 24-carat gold is sourced from a venture between Indian bullion importer MMTC and Swiss gold refiner PAMP.
Paytm, which leads the crowded e-wallet space in India, currently has more than 225 million users.
- Paytm plans to sell 5 tonnes of gold valued around $200 million this year
- Clients can buy & sell even miniscule amounts of gold digit even at Re. 1
- Paytm currently has more than 225 million users