Payments Cos Witness a Gold Rush During Festival Season
With wide adoption of digital gold, firms record strong transaction nos
Bengaluru: After the big boost during Navratri week, digital payments companies have recorded bumper transactions during Dhanteras and the pre-Diwali shopping festival. Driven by consumer demand for gold during this time, payments companies have recorded a strong show in transactions and, at the same time, seen a wide adoption of digital gold. Companies like Paytm and PhonePe, which sell digital gold on their platforms, recorded a significant jump in payments during Dhanteras. The largest payments company, Paytm, said that since its launch, the company has sold more than 2 tonnes of gold through its application and around 10 million people have bought the metal through the app.
In a note shared with ET, the company said Paytm Gold has witnessed widespread adoption across Delhi, Haryana, Uttar Pradesh, Maharash- tra, West Bengal and Karnataka with two-thirds of the overall adoption coming from tier-II and tier-III cities.
“Our gold gifting service has proved to be a great hit, registering a 10-times jump in orders. This further reaffirms our belief that Paytm Gold is an attractive gold buying and gifting method. We expect the festive gold shopping fervour to continue weeks after Diwali,” said Nitin Misra, senior vice-president, Paytm. Even Paytm’s Bengaluru-based competitor PhonePe said it saw a significant jump in sale of digital gold on its platform. The company claimed to have recorded a 200% increase in sale of gold during Dhanteras compared to a normal business day. More than 40% of the pincodes in the country saw gold purchase on PhonePe’s application. It also claimed to have recorded a 400% jump in ticket size of gold purchases on its platform.
The RBI had said in its annual report in August “the increasing volume of complaints involving digital payments being received by the offices of the banking ombudsman and the large number of prepaid payment instruments issued by banks and non-bank issuers have necessitated establishment of a separate ombudsman for digital transactions.”
RBI last year issued instructions to mobile wallet issuers and non-banking payments entities to establish a publicly disclosed customer grievance redressal framework.
“(PPIs will be) designating a nodal officer to handle the customer complaints, the escalation matrix and turnaround time for complaint resolution. The complaint facility, if made available on website/mobile, shall be clearly and easily accessible,” RBI said in a master circular issued in October 2017.