PhonePe launched a category on the app where users will be able to buy and sell 24 Karat gold and will give prices of the same. The app will allow customers to buy gold starting from Rs 1.
Customers have to create a gold account and can monitor live prices to make purchases. All the gold prices will be linked with rates in the commercial bullion market. PhonePe has partnered with SafeGold to launch this category. SafeGold has appointed IDBI Trusteeship Services to protect the interest of customers with regard to their gold purchases.
SafeGold is a product of Digital Gold India Private Limited, which is looking at using technology to improve transparency and efficiency in buying gold. IDBI Trusteeship Services is a company which promoted by IDBI Bank, LIC of India, and GIC of India. Gold purchased on PhonePe is physically deposited into a vault and is fully insured at all times. If a customer needs the physical gold, they can ask for it to be delivered to their doorstep.
Gold looks like it is becoming a wealth management product for payment companies. Earlier in April, Paytm introduced gold purchases where consumers could buy gold online from MMTC-PAMP. MMTC is Government of India, public sector trading enterprise, and PAMP SA is a Swiss company and a bullion brand. During the pilot, Paytm said it limited purchases to 1 gram though most purchases have been for less than Rs 100, though the average purchase is for Rs 500.
Meanwhile, traditional investment services such as Motilal Oswal also allow users to buy gold online and also has a partnership with MMTC-PAMP.