Digital payments company, PhonePe has announced the launch of UPI SIP for investing in gold.
Users can now invest in 24K gold for a specified amount every month and accumulate their gold in insured bank-grade lockers maintained by PhonePe’s partners, MMTC-PAMP and SafeGold. The user has to select the gold provider, mention the monthly investment amount, authenticate with the UPI PIN, and the deposits will be deducted automatically every month.
Users will have complete control of their gold investments and can sell the gold at any time and get a direct credit to their bank account. They can also choose to redeem their gold in the form of gold coins and bars, which will be delivered to their doorstep. Through the gold SIP, users can begin investing in 24K gold with ₹100 per month and continue to invest small amounts regularly to build their gold savings systematically.
Speaking at the launch, Terence Lucien, Head of Investments, PhonePe, said, “PhonePe’s vision is to build products and offerings that cater to the varied investment needs of its 380 million users. As Indians look to find smart ways to buy gold, we are happy to provide our users the option of setting up a gold SIP through UPI. PhonePe’s Gold SIP will help users build their long-term gold investments in a hassle-free way by allowing them to buy the purest 24K gold through small and regular monthly investments.
PhonePe’s gold investment product will compete with the likes of Jar. The Tiger Global-backed start-up is helping Indians to invest in gold by rounding off their daily transactions and investing the spare change in digital gold. Jar allows users to start their investments with ₹10 and every time they make an online payment, a small round-off amount is added to their savings.