Digital payments company PhonePe launched a feature on its platform on May 25 that enables users to invest in gold using the Unified Payments Interface (UPI). Additionally, users can now sign up for a Systematic Investment Plan (SIP) with a specified monthly high-purity 24K gold.

PhonePe informed that users could start investing in gold with an amount of at least Rs 100 per month and continue to make small investments regularly to build up gold savings systematically.

“As Indians look for smart ways to buy gold, we are delighted to offer our users the option to set up a Gold SIP via UPI. PhonePe’s Gold SIP will help users build their long-term gold investments, allowing them to You can invest in gold for months with only a small investment in the purest form of 24K gold,” said Terence Lucien, Head of Investments at PhonePe.

The company informed that through UPI SIP, users will have complete control over their gold investment and can sell gold at any time to deposit funds directly into their bank accounts. Interestingly, PhonePe said customers also could exchange gold in the form of coins and bars, which will be delivered to their door.

The fintech company claims that Gold SIP on PhonePe can help users buy gold with the help of UPI. “Users need to choose a gold supplier, mention the monthly investment amount, authenticate with UPI PIN, and you’re done! Setting up a gold SIP is a one-time, hassle-free process, and all subsequent investments are fully automated, ‘ the statement said.

The company also believes that since the gold SIP is a regular investment, users do not need to track the price of gold to make investment decisions. “Investing a fixed amount of money in gold over a specific time interval reduces the average investment cost for users in the long run,” it said.

Customers can store their gold in insured bank-grade lockers maintained by PhonePe’s partners MMTC-PAMP and SafeGold. PhonePe follows in the footsteps of Paytm and other fintech companies by adding this feature to its platform.