Indian e-commerce company Flipkart’s digital payment arm Phone-Pe has launched a digital gold product in partnership with SafeGold. Digital payment company Paytm is already offering a similar product.
Focus on Creating Multiple Use Cases
“We are focused on creating multiple use cases for consumers. We did credit card payments on the PhonePe app and now digital gold is an addition in that direction,” said Hemant Gala, head of banking relations and strategic partnerships at PhonePe.
Allowing Consumers to Buy 24-Karat Gold
PhonePe uses the Unified Payments Interface for its clients, consequently empowering them to make installments straightforwardly from their ledgers without the need to stop cash in a wallet.
The organization will enable purchasers to purchase 24-karat gold worth any sum. The cost will be connected to that in the bullion market.
Partnering with Logistics Partners
To deliver the gold physically to customers, Phone-Pe has tied up with logistics partners. Otherwise, it will be store gold in the vaults of Brink’s, a global secured storage facility.
Payment companies which work with wafer-thin margins are creating products like this to mainly increase the stickiness of clients and, in any event for the time being, are not taking a gander at these as revenue sources.