Paytm launches gold coin rewards on payments; stock slips 2%

One 97 Communications Ltd (Paytm's parent) on Thursday announced the launch of Gold Coins, a first-of-its-kind initiative where every payment earns Gold Coins that can be converted into Digital Gold.

With this launch, Paytm aims to transform everyday payments into a means for long-term savings. Every transaction on Paytm -- including Scan & Pay at merchant outlets, online purchases, money transfers, recharges, bill payments, recurring payments and more -- now earns Gold Coins worth 1 per cent of the transaction value.

For redemption, 100 Gold Coins equal Re 1 of actual gold. Payments made via UPI, credit cards, debit cards and net banking qualify, while credit card and RuPay credit card payments on UPI earn double Gold Coins. The redemption process also allows customers to buy additional gold post-redemption.

The initiative, launched ahead of the festive season when gold demand typically rises in India, reflects Paytm's focus on adding value to digital payments. By converting Gold Coins into Paytm Digital Gold, consumers can steadily build a reserve of one of India's most trusted assets.

Paytm also highlighted its support for the Centre's vision of Atmanirbhar Bharat and the role of GST in simplifying compliance and creating efficiencies. The company said these reforms have enabled innovations like Digital Gold, helping households and businesses channel savings into wealth creation.

A Paytm spokesperson said, "Gold has always held a special place in Indian households and businesses. With this launch, we are rewarding every payment with Gold Coins that can be converted into Digital Gold, transforming daily transactions into lasting value."

On the stock front, Paytm shares slipped 2.45 per cent to hit a day low of Rs 1,132.70 after the announcement.