New Delhi, July 30: E-wallet company Paytm has sold over 175 kg gold on its platform since the launch of the service in April, with Bengal accounting for a big chunk of the buys.

"Over 30 per cent of the purchases have come from Bengal with Calcutta making up a large sum," Krishna Hegde, senior vice-president pf Paytm, told The Telegraph.

"Bengal is among the top 3 markets for Paytm Gold and we see millennials saving on a weekly basis," he added.

The top localities in Calcutta buying the yellow metal in e-wallet were Beadon Street, Barabazar, Writers' Buildings and Santoshpur, according to data analysed by Paytm.

Hegde said, "We are registering 100 per cent month-on-month growth across Bengal. While rural customers are saving in small amounts, urban customers are buying larger amounts."

"People in the 25-35 age group are our core buyers, but increasingly we are seeing users aged above 50 embrace the product," Hedge added.

Paytm had launched the product on Akshaya Tritiya this year and has sold more than 175 kg through its wallet application.

It has partnered government-promoted precious metal processing facility MMTC-PAMP to allow consumers to buy gold for as low as Re 1. Using their Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online and store it in vaults free of charge. MMTC-PAMP is the country's only internationally accredited refiner.

India is the largest consumer of gold after China, with many banking on the yellow metal for savings and using it as a hedge against inflation, besides as gifts. The country imports about 800 tonnes a year.

The company aims to sell 5 tonnes in the current fiscal, worth over Rs 1,300 crore at current prices.

In line with compliance rules, Paytm has made it mandatory for users to furnish know-your-customer documents for transactions of Rs 20,000 and above and PAN card for purchases over Rs 50,000. There is no cap on the maximum quantity that can be purchased through Paytm.

"The response has exceeded our expectations. We are currently in the process of enabling customers to convert this gold into jewellery of their choice at their favourite outlets across India," Hegde said.

He added that this would help Paytm reach out to a "wider set of customers," while also benefiting jeweller partners. "Paytm customers will be able to find jewellers near them where they can convert the digital gold into jewellery instantly by paying the making charge."

Besides allowing users to trade in digital gold, Paytm will ship gold coins across India for those who want the metal delivered.

"This is actual physical gold that is stowed away in our vaults when you make a purchase," Hedge said.

Indians are used to making high-value gold purchases without the visibility of market-linked prices. Purity, security, and storage charges are some of the issues that investors have to deal with, leading to high friction costs while investing in gold.

Paytm's goal is to offer flexibility to the customers in deciding the amount they want to invest and help them to develop a habit of saving regularly in digital gold for long-term wealth creation.