In a move aimed at promoting small but consistent savings, fintech giant PhonePe has joined hands with financial fitness platform Jar to introduce a new ‘Daily Savings’ feature. This offering will allow users to invest in 24K digital gold with minimal effort and small daily contributions. With the rise of digital financial services in India, this collaboration brings a fresh, accessible way for consumers to save money and secure their future.
Credits: Inc 42
What is PhonePe’s ‘Daily Savings’ Feature?
PhonePe’s ‘Daily Savings’ feature allows users to invest in digital gold starting with as little as INR 10, and up to INR 5,000 daily. This flexibility gives users the opportunity to begin saving in manageable amounts, making it easy for a wider audience to participate. With gold being a historically favored asset for wealth preservation in India, PhonePe is tapping into a massive market with this feature, which could revolutionize how people think about gold investments.
The entire process of investing in digital gold is streamlined and can be completed within 45 seconds, thanks to Jar’s integrated Gold Tech solution. Initially available to select businesses as a partner offering, this seamless integration ensures that gold saving becomes a hassle-free experience.
Credits: CNBCTV 18
How Does It Work?
The ‘Daily Savings’ feature simplifies the investment process for users by automating daily contributions. Once the user sets up their savings plan, contributions are deducted automatically, helping people build a savings habit without having to manually intervene each day. The flexibility to pause, cancel, or redeem the savings at any time ensures users can access their funds when needed. If desired, users can also convert their digital gold back into cash, adding another layer of convenience.
Niharika Saigal, Head of InApp Categories, Consumer Payments at PhonePe, expressed her excitement about this new feature, stating, “We have seen a significant surge in adoption of Digital Gold on our platform in recent years. By starting small and saving consistently, individuals can progressively work towards achieving their financial goals.”
Jar’s Role in the Partnership
Jar, known for its innovative financial fitness tools, powers the back-end of this feature through its Gold Tech platform. According to Nishchay AG, founder and CEO of Jar, this collaboration with PhonePe is a step toward integrating gold savings into everyday financial services.
By leveraging Jar’s technology, PhonePe offers 99.99% purity-certified 24K digital gold from trusted partners, ensuring transparency and trust for consumers. With more than 1.2 crore customers across over 19,000 postal codes in India, this partnership aims to broaden access to secure and flexible savings options for millions of users.
Riding the Wave of Digital Gold Investments
The adoption of digital gold has surged in India, especially as people look for safer, more accessible investment options. With PhonePe already holding a 48.3% share of the Unified Payments Interface (UPI) ecosystem, and recording 6.98 billion transactions worth INR 10.28 lakh crore in July 2024, this new feature complements its already massive user base.
PhonePe’s new product, powered by Jar, simplifies the digital gold investment process, making it accessible for everyone—from seasoned investors to first-time savers. In a country where gold has cultural and financial significance, this approach to digital savings could capture the attention of a vast demographic that prioritizes financial security through gold ownership.
Financial Gains for PhonePe
PhonePe’s growth trajectory has been remarkable, and its latest financial results for FY24 underline the company’s progress. The startup reported profitability, excluding ESOP costs, and achieved an adjusted profit after tax (PAT) of INR 197 crore for FY24, marking a significant turnaround from the adjusted loss of INR 738 crore it faced in FY23. This marks a major milestone for the Walmart-owned company, especially in a highly competitive fintech landscape.
Revenue growth also stood strong for PhonePe, with a 74% increase from INR 2,914 crore in FY23 to INR 5,064 crore in FY24. This financial boost demonstrates that PhonePe is well on its way to solidifying its leadership in the payments and digital finance industry.
Conclusion
PhonePe’s partnership with Jar to launch the ‘Daily Savings’ feature marks an important step in making digital gold investments more accessible and convenient. By enabling users to invest in 24K digital gold with minimal daily contributions, the product is poised to attract a wide range of users, from casual savers to those seeking a secure way to grow their wealth. With its simplified approach and strong financial backing, this new feature could redefine how Indians approach their financial future.
