Gold becomes digital payment option after joining bitcoin
An electronic payment app has been launched by a fintech firm called Glint.
It allows people to pay for goods and services in gold.
The app is available after 20 Nov, and allows users to link a Mastercard to their phone, which then will let them buy physical gold that is stored in a Swiss vault.
Jason Cozens, the company's chief executive, said that central banks' quantitative easing policies and the collapse of some banks have made many people realize that traditional accounts are not a risk-free option.
"Since the financial crisis, people are starting to understand that purchasing power of their money isn't safe," he said.
On Glint website is published that once either a currency or gold is linked to a Mastercard, customers would be able to buy "anything from a coffee to a car." The company adds that users also select the precious metal to make peer-to-peer payments.
Cozens valued the gold market at $8 trillion and said people would be surprised by how many people want to hold or spend gold.
He added that the app was originally aimed at wealthy people looking to store their wealth outside of the banking system, but research showed that there was interest across the financial spectrum.
"Look at a student who grew up during the financial crisis. They have a mindset that says they believe in independence about savings," he said.
Cozens said he expected the app to prove particularly popular in India and Germany.
Over the next few months, Glint will also allow users to hold and spend funds in a variety of currencies, each stored in a U.K. bank.
Users can check exchange rates on their phone before selecting which currency or what amount of gold they will use to make a purchase.
The app was launched in Europe on Monday and will be rolled out in Asia and the U.S. next year. Early investors include a former CEO of the World Gold Council as well as a former chairman of Goldman Sachs in Asia.
The price of gold has risen about 12 percent in value this year and currently sits at just below $1,300 an ounce.