September 24, 2025
Transaction values more than doubled in the same period, rising to INR 1,184 crore from INR 550 crore
Gold prices climbed 44% year-on-year to INR 11,021 per gram, adding to investment momentum
Platforms like PayTM, Google Pay, PhonePe, MMTC PAMP and Augmont are driving digital gold access, alongside jewellers such as Tanishq and Senco
Digital gold, stored in vaults and backed by certificates, can be redeemed for cash or physical gold
Investing in gold is undergoing a transformation, with more consumers opting for digital gold even as prices of the yellow metal climb steeply. Data from the National Payments Corporation of India (NPCI) shows that the volume of digital gold purchases through UPI rose 377% in just 16 months, hitting 99.77 million transactions in August, compared with 20.92 million in April 2024. The value of transactions more than doubled during the same period, to INR 1,184 crore from INR 550 crore.
Experts say the surge is driven by expectations of further price increases and the convenience of digital purchases. The price of 24-carat gold rose 44% year-on-year in August to INR 11,021 per gram, up from INR 7,633 a year earlier. Analysts note that digital platforms enable buyers to purchase even small quantities, making gold more accessible to households with varying budgets.
Consumers are using service providers such as PayTM, Google Pay and PhonePe to invest in digital gold, which is primarily offered by MMTC PAMP and Augmont Goldtech. Jewellers, including Tanishq and Senco, have also entered the space. Digital gold is certified 24-carat, backed by custodians, and buyers receive digital certificates that can be redeemed for either cash or physical gold at designated outlets.
The category has emerged as one of the fastest-growing for UPI transactions, joining the NPCI’s top 10 medium-volume merchant categories in April 2024 and climbing steadily since. UPI remains most heavily used for groceries, which accounted for transactions worth INR 68,116 crore last month.
India’s chief economic advisor V. Anantha Nageswaran recently said consumer buying patterns are shifting structurally, with digital channels gaining traction. He added that disposable incomes are set to rise further with recent GST and income tax cuts, which will likely boost digital gold purchases even more.
Source: Economic Times