Competition is going tough. Every payment app is struggling to create new businesses. The Flipkart promoted PhonePe is also trying hard to keep itself ahead in the race. The gold-selling is its new business. Now, you can buy gold through the PhonePe app. It is called as the Phonepe Digital Gold.
Like Paytm, the PhonePe is also selling digital gold. However, the PhonePe gives you an option to take the physical gold as well. Yes! and PhonePe is promising that the gold would be 24 carats pure.
Features of PhonePe Gold
Form of Gold
When you buy gold through the PhonePe, you buy the actual physical gold. It is not a paper gold. Neither it is a financial product like the gold bond. Rather you purchase this gold for your use or investment. The company buys gold for you. However, you can keep that gold in a safe vault. It is helpful if you want to sell gold in future.
Purity of Gold
The gold would be 99.5% pure. It is a 24-carat gold. The Gold trading company SafeGold purchases gold for you.
Amount of the Gold
You can buy any amount of the gold. It be as less as 0.001 gram. Even you can buy gold for ₹1. You can buy maximum 10gm gold through the PhonePe. To buy more amount, you have to fulfil the KYC formalities.
The PhonePe itself does not buy the gold. It only provides a platform to purchase and sell gold. All the transaction is done by the ‘SafeGold’. This company sell gold through the online platform. The IDBI bank is the trustee of the gold.
How You Get The Gold
Normally you would not get the purchased gold. Rather it would be kept in the Safe vaults. However, if you need, you can take delivery of the physical gold, anytime.
There is a company to keep the gold in its vault. The name of this company is Brink’s. This company is known for its safety measures. The Brink’s check the authenticity of gold before keeping it in the vault. The gold must be 99.5% pure.
You can also get the delivery of your gold. The SafeGold would send the pure gold to your address. However, to take delivery of gold, it should weigh minimum 5 gram. The weight of gold should be in multiples of 1 gram. Any fraction of a gram would remain in the vault.
The gold coins are delivered in tamper proof packaging. The gold is once again verified before the delivery.
Price of the Gold
The price of the gold at PhonePe would be taken from the wholesale gold market. The price updates after every 5 minutes in market hours. However, PhonePe did not specify the market from which it would take the current price.
You can pay for the gold through UPI, debit card, credit card or PhonePe wallet. You have to also pay 3% GST on the purchase.
Terms and Conditons
- The PhonePe is only providing a platform to pay online for gold purchase. You purchase this gold from the SafeGold. The PhonePe only facilitates payment and customer service.
- PhonePe do not take any guarantee of your gold purchase.
- You can keep Gold in the vault maximum for 7 years. Within this period, you have to redeem the gold and get the delivery. Either, you can sell it at PhonePe platform.
- There would be a delivery and minting charge for the physical delivery at your home. The delivery is not possible at all location. You must check it before placing the order.
- There may be storage charge after two years. It would be charged for keeping gold in the safe vault. This charge is applicable if you don’t buy more than 2 gm gold untill 2 years. The monthly charge would 0.05% of the gold value.
- There would be also a transaction charge at the time of selling the gold.
- There would be a difference between the buy and sell price. The sell price would be lower than the purchase price. It is natural in any market.
Benefit of Gold Through PhonePe
It is convenient to get gold online. As you are not required to visit to a jeweler. It takes time and effort to purchase physical gold.
Good and Transparent Price
The price of gold at PhonePe would be competitive. As promised it would be wholesale rate of the bullion market. The price would be constantly updated. You can compare the price of gold with the price of bullion market.
It is safer to keep gold in Brinks Locker as The gold is insured there. However, at the bank locker, it is not insured.
The gold would be 24 carat pure. There is no chance of impurities. We know that often our neighbourhood jewelers give us impure gold. The SafeGold and PhonePe would not risk their reputation by selling impure gold.
Delivery of Physical Gold
When you purchase gold through the PhonePe platform, it is kept in the safe vault. However, you can take the delivery of physical gold, anytime.
To take the delivery of gold, open the Phoenpe app and visit the gold locker. You would see your gold balance there in the locker. You can place order of the required weight from their. The remaining gold would remain in the vault.
The minium quantity of the gold must be 5 gram. You can get gold in multiple of one gram.
You can get gold in various forms. There is a catalog of gold product. You can choose the product from the catalog. Every product has separate making charges. You have to pay this charge upfront.
The SafeGold delivers the gold product through its chosen logistics company. You get the notification of dispatch at your mobile. You can track the status through the PhonePe App. It takes 7-10 days for the delivery of the gold.
Minting and Delivery Charges of SafeGold
Making and delivery charges are listed in the table below. These prices are taken from the SafeGold Website.
|Coin Weight (gms)||Minting and Delivery Charge|
PhonePe Digital Gold Offer
The PhonePe is giving cashback offer on Gold purchase through its platform. You would get a cashback of ₹101 on first pruchase of gold. These are the terms of PhonePe Gold Offer
- The minimum Gold purchase transaction should be of ₹2000
- Offer is applicable only once per PhonePe registered customer
- The offer is applicable on all payment modes.
- The offer is valid only once per Bank Account, Credit Card and Debit Card.
- Cashback will be credited into your PhonePe wallet within 24 hours of successful completion of the transaction.
- Cashback can be used for recharges, bill payments, merchant and gold transactions across PhonePe
- You can’t transfer cashback to bank account or another wallet.
PhonePe Gold Vs Paytm Gold
The Facility of PhonePe Digital Gold is similar to the Paytm Gold. Both of these payment apps are selling the gold through similar methods. However, there is difference on minimum amount of gold for delivery.
- PhonePe and Paytm Both are only providing platform to buy the gold.
- You can buy gold for a minimum one rupee from both the apps.
- The gold purchased through these platforms are kept in safe lockers.
- You can take physical delivery of the gold pruchased through the Paytm and PhonePe.
- Paytm does not sell gold to you if it can’t deliver to you. You can buy gold from PhonePe what if there is no delivery. You can go to the Safegold center and take the delivery.
- The PhonePe has partnered with the SafeGold for selling gold. Whereas Paytm has partnered with the MMTC-Pamp. MMTC is a government company.
- You can get the delivery of 1gm Gold through the Paytm but PhonePe has the minimum limit of 5 gram for taking delivery. Thus Paytm Would be more convenient.
Other Ways of Gold Investment
- Besides gold from PhonePe and Paytm, you can buy gold coins from the physical stores as well. Most of these big jewelers accept back their gold coin, if you want to sell it. You can also buy gold in EMI through the Tanishq and other jewelry chains. The gold from these stores can be used to make the gold jewelry.
- Banks and post offices also sell pure gold coin. However, these don’t buy it back. Nowadays, Amazon and Flipkart also sell gold coins and other products.
- But, if you want to invest in Gold and take benefit of its rising price, the Gold bond and Gold ETF would be a better choice. The Gold bond is particularly good as it gives you interest as well.
SafeGold is a product of Digital Gold India. This company focusses on using technology to improve transparency and efficiency in buying gold. The SafeGold immediately buys gold for the customer as soon as it receives the order. It issues an invoice with the rate and amount of gold and applicable taxes. After this transaction the customer becomes the legal owner of the gold. The Safegold purchases physical gold for every transaction. For every rupee collected from customers, there is corresponding physical gold which belongs to the customer and stored in the vault. As per sources, SafeGold has already integrated its platform with PhonePe to allow customers to buy and sell the precious metal digitally.
About Brink and IDBI Trusteeship
The SafeGold keeps all of the Gold in the safe vaults of Brink’s. The Brink is leading logistics company of the world to store Gold and Cash. It verifies the authenticity of the gold before keeping it in the vaults. The gold is kept with the Brink’s in the supervision of the IDBI Trusteeship services. The primary role of an independent trustee is to ensure that customer interests are protected at all times. Secure storage is free for two years with a nominal charge thereafter.
PhonePe is a payment app by the Flipkart. It was early adopter of the UPI Payment systems. Today it is one of the leading UPI app. It claims that In the November there has been transaction of $15.4 million (₹100 Crore) through this app.
According to the company, the volume of transaction increased by 8200% in last one year. In fact, much of its business comes through the Flipkart. In latest sale of Flipkart, there has been special offer for payment through the Flipkart.
Recently, PhonePe has introduced the credit card bill payment and Gift cards. You can use this app to pay for movie tickets, food delivery, pharmacies, groceries, travel and petrol pumps. You can top up this wallet using UPI, credit and debit Cards.
It has also launched a point of sale device. The price of this device is only ₹650 ($10). It is one of the cheapest POS in the world.