Fintech startup Dinero on Tuesday, July 12 launched the option to win digital gold on its app, by partnering with MMTC-PAMP India Pvt. Ltd, in a bid to attract young Indians. With this launch, users stand a chance to win 999.9 per cent pure gold at any time on Dinero’s application, the company said in a press release on the day. Digital gold acts as a form of small investment, where people can by the asset for as low as Re 1. The Dinero app encourages young people to invest in various avenues through its platform, and rewards them with items incluuding digital gold, once they reach the investment gold.
What is Digital Gold?
As the name suggests, digital gold is gold that can be purchased online. The equivalent value of physical gold is stored by the seller in a safe vault on behalf of the investor. Digital gold can be bought by anyone through various platforms. In India, three companies that sell digital gold include Augmont Gold; MMTC-PAMP India Pvt. Ltd, a joint venture between state-run MMTC Ltd and Swiss firm MKS PAMP; and Digital Gold India Pvt. Ltd with its SafeGold brand. You can also buy digital gold using payment wallets. Digital gold bought from MMTC-PAMP is more likely to be purer than others.
What is Dinero Offering?
“Dinero and MMTC-PAMP create the perfect synergy, capitalizing on the digital infrastructure provided by MMTC’s platform and Dinero’s consumer base, to reach out to the segment of young Indians urging them to further invest their money and earn Digital Gold as rewards. This partnership will not only encourage the habit of investing but also support the nation’s successful march towards Digital India,” said the company in a press release.
The application, which is exclusively available on the Android play store, simulates the experience of collecting treasure as an exciting and gamified experience. After the purchase, the gold will be added to the insured bank-grade vaults in MMTC-PAMP owned facility and will have zero holding charges.
While many fintechs are still following the traditional methods of cashback, Dinero is taking a step further by rewarding its customers with this timeless asset for building consistent financial habits, the company said.
Commenting on the launch, Dinero founder Kashyap Mahavadi said, “Our current focus is on helping urban youngsters meet their goals through investing. This can be a game-changer for the young users as their consistent investing habits will now be rewarded. The rewards earnt on the app can be converted to Digital Gold. We have partnered with MMTC-PAMP, one of India’s leading Digital Gold providers.”
Amul Saha, chief digital officer at MMTC-PAMP, said, “We are ecstatic to announce our partnership with Dinero. Digital Gold is a dynamic investment instrument that is completely liquid and allows investors to buy/sell 24K, 999.9 purest gold at any time. Unlike gold jewellery, you don’t pay any making charges when you buy digital gold which could be liquidated 24×7 with a single click. The cost of storage, which is considerable when a customer stores gold jewellery in bank lockers, is zero for digital gold as we ensure the customer’s holding is kept secure in 100 per cent secure, and insured bank-grade vaults in MMTC-PAMP owned facility.”
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