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, according to the Economic Times.
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. The company said Paytm Gold has witnessed widespread adoption across Delhi, Haryana, Uttar Pradesh, Maharashtra, West Bengal and Karnataka with two-thirds of the overall adoption coming from tier-II and tier-III cities.
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.