Google Pay has announced that it will soon start offering digital gold on its platform, which will be followed by some other wealth management products.
It may be noted that digital gold is not a new thing for Indian consumers and is being sold in the Indian market for quite some time now. Paytm, for instance, started offering digital gold investment in April 2017, followed by PhonePe in India. Google Pay has recently announced their new offering whereby it gives an option to purchase digital gold on its platform. Other than that, the US search giant is also looking to launch other wealth management products, including mutual funds, and insurance.
The digital payments wing of Google has already updated its terms of services to say ‘GAP shall mean the Gold Accumulation Plan provided by MMTC’ and ‘Gold Account means such account on Google Pay which has been linked to the GAP.’
Google Pay started out with peer-to-peer transfers and bill payments and had 25 million users in India as of September 2018 and they entered the digital gold market two years later in India. In August 2018, Paytm said it is going to cross 1.5 tons in gold transactions through its platform with a 70 per cent share of MMTC-PAMP s virtual gold offerings in the country. MMTC-PAMP is a joint venture between MMTC Ltd, a Government of India undertaking, and PAMP SA, Switzerland, a global leader in refining bullion and a global referee for precious metals. MMTC-PAMP is a gold and silver refinery accredited by the London Bullion Market Association’s (LBMA) Good Delivery standards.
Paytm was one of the first companies to launch ‘Gigital Dold’ the gold accumulation plan (GAP) in collaboration with the MMTC-PAMP. It allowed one to buy, sell and store gold digitally. One can order to buy gold, by registering with a valid login ID and password. Irrespective of public and bank holidays, gold can be purchased 24×7. Users can also see the live price of gold on all Paytm platforms. Gold can be bought and sold in grams of gold or in INR. The gold that will be bought by the users will be stored in the MMTC vaults, without any storage charges.
To strengthen its offline presence, on Wednesday, Google Pay partnered with point-of-sale companies Pine Labs and Innoviti Payment Solutions Pvt. Ltd. Through this, the US search giant aims to establish a network of 200,000 stores across 3,500 towns and cities in India over the next few months. Currently, it claims to have 45 million monthly active users.