BharatPe, the QR code-based payments app, has launched a new feature on its platform—Digital Gold. The firm stated that the launch of this new feature is in sync with the company’s range of financial products offered to small and medium enterprises (SMEs). The new product enables merchants to buy and sell 99.5% pure 24-carat gold.
The merchants using the app can now choose to buy digital gold in terms of rupees or grams without any time restrictions. The company has brought this product on the platform through an alliance with SafeGold, a digital platform that facilitates customers to buy, sell, and receive vaulted gold. SafeGold has availed IDBI Trusteeship Services to safeguard merchants’ interests related to the gold purchase.
BharatPe has launched this product at the right time. With the Diwali season around the corner, BharatPe shared its expectation of selling 6 kg of gold over the festive season. The platform allows merchants to invest an amount as low as Re.1 to purchase gold. As for payments, the merchant can choose to pay via BharatPe balance or UPI gateway. Soon, the app will add credit and debit cards as payment options as well.
The new feature allows merchants to get a real-time view of gold prices from global markets on the app. Once a purchase is made, the purchased gold will be added to the ‘BharatPe Gold’ section on the merchant’s account on the app. The gold balance can be viewed at the ‘Gold Locker’ section of the app. Merchants can also opt to request for delivery of physical gold to SafeGold by choosing the relevant option in the ‘Gold Locker’ section.
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The good news is that merchants can claim the benefit of GST input credit when gold is bought on the app. The purchased gold will be kept safe at 100% insured lockers with SafeGold. No additional cost will be charged for this arrangement.
In case a merchant would like to sell gold, it can be done within a few seconds on the app. The credit arising from the sale can be directed towards the BharatPe registered account or bank account.
Suhail Sameer, Group President, BharatPe, expressed that gold is not just an investment in India, but an auspicious possession in Indian homes. The focus on the digital gold market is in line with the overall vision of the app in becoming a one-stop financial services platform for SMEs. He also mentioned that there were many requests from merchants to launch gold buying and selling services on the platform.
The Group President stated that BharatPe decided to partner with SafeGold since gold purity and security is of utmost importance. He also mentioned that 200 grams of gold were sold right on the day of the launch of the service. A target of selling 30 kg gold is set for the FY21, he said.
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