Paytm: Big news for Paytm users. Paytm is set to restart physical gold deliveries for its digital gold investors. The company informed Moneycontrol that this will take place before Akshaya Tritiya. Many payment and investment applications provide users with the ability to invest in digital gold on their platforms. Customers have the flexibility to sell their gold whenever they choose or opt for physical delivery of the gold.
In a statement, Paytm mentioned, “We are implementing changes to improve the digital gold experience by offering enhanced redemption options. As part of this upgrade, physical redemption and delivery of digital gold on Paytm will be accessible in over 12,000 pin codes. This feature is expected to launch from mid-April after we finalize the backend product and technology enhancements.”
Redemption was halted in August 2025
Some Paytm gold investors reported that the company temporarily paused physical redemption of digital gold in August of last year, without providing any explanation. The physical gold redemption option is currently labeled as “Coming Soon” in the app. The company explained that this temporary halt was necessary to enhance infrastructure and logistics, ensuring a consistent experience for customers nationwide. Paytm also clarified that the option to sell gold at the current market price has always been available to users.
The rising appeal of Digital Gold
In January 2026, digital gold purchases via UPI reached unprecedented levels. A total of Rs 3,926 crore worth of digital gold was acquired, with 219 million transactions recorded. This number is four times greater than in January 2025. Over 90 percent of digital gold purchases were made through UPI. The surge in consumer interest in digital gold can be attributed to increasing gold prices, its status as a secure investment asset, ease of acquisition, and the convenience of investing in small amounts. Customers can buy digital gold starting from as little as Rs 1 up to around Rs 2 lakh per day.
Payment apps like Paytm, PhonePe, Jar, Amazon Pay, Google Pay, and Tanishq offer the ability to purchase digital gold. The value of gold is tokenized by companies like MMTC-PAMP or SafeGold. Paytm’s partner is MMTC-PAMP, a company owned by the Government of India. Whenever a customer purchases digital gold, these apps purchase an equivalent amount of physical gold and store it in a secure vault with MMTC or SafeGold. This process is also audited by an independent auditor to ensure that these apps are purchasing the corresponding amount of physical gold.
