How Cred Makes Money?

CRED is a Bengaluru-based Fintech organization that permits its users to make credit card transactions through an application and receive exclusive offers. This platform was formed in April 2018 by Kunal Shah, former founder of Freecharge. With CRED, you can manage and pay all your credit card fees. Not only does it offer exclusive credit card discounts, it also tracks expenses.

What is CRED and how does it work?

CRED offers the opportunity to reduce the pressure to process multiple credit cards and make credit card payments on time. The members earn points that can be utilized for quick purchasing through the CRED app. In the year 2015, Kunal sold Shah Freecharge and was searching for another idea that could revolutionize people’s lives.

During his studies, he came across numerous automatic appliances and products in advanced countries, such as malls without cashiers, gas stations without shop assistants, etc. at no extra cost. It is better for people with solvents. But the question was why would people pay their credit card bills through your app? Hence the concept of ​​rewarding loyal credit card owners who made their bill payments on time. With this plan, CRED was created in April 2018 to attract consumers.

Download and enter your mobile number in the CRED app. The application will verify the cards associated with the registered phone number until the account is configured. If the credit score is over 750, users can use the dedicated application. Otherwise, they are put on the waiting list. Once the access is available, CRED applications can access email ID to read and scan credit card receipts such as expiration dates, service information, etc. Also, they have 24×7 working customer support.

  • CRED gives you a single place to process your entire range of credit cards.
    Each time you make bill payments through your credit card, certain CRED currencies are given that you may utilize later to get discounted value on various CRED partnered products.
  • It analyzes the total costs, the secret costs and records the limits of the loans, and gives you advice on all this to avoid extra costs.
  • CRED protection is the application function that reads e-mail extracts with details about balance, due date, bank fees, and shared expenses.
  • The smart feature enables consumers to simplify costs when looking at credit card statements.

The Business Model of CRED

CRED issues reward points to the users for making bills payments via the application. CRED collaborates with companies to offer the offers. As a result, companies gain perceptibility and grip on the application where people are spending money in advance. As a result, CRED gets more offers to show on its application. This gives visitors more reasons to register and pay their bills via the app.

The 3 major supports of CRED’s business model: consumers who make their bill payments with credit cards, the CRED application, and companies that make offers through the application.

CRED customers: Many people pay for their credit cards through payment applications or by logging in to their bank account directly. By using the CRED app, they can perform the same function of paying their credit card bills more economically. As more and more people use CRED for benefits, they are sharing these benefits more widely.

CRED application: the application allows users to register and see all available offers to pay their credit card bills. As you proceed with paying your bills, collect CRED coins that you can redeem for rewards.

Companies that offer offers through the application: interacting and working with companies is absolutely necessary for CRED. The CRED application provides visibility for small and large companies, as it is used by all types of buyers.

To redeem the CRED programs, a score point of over 750 must be achieved. Debt amount, your credit score, and how your money is invested. CRED rewards its users with CRED tokens for invoice payment, which can then be redeemed with available offers. Simply put, CRED offers a basic incentive to pay bills quickly. To make the offers more attractive to users, CRED collaborates with several companies. In turn, companies expose themselves to buyers from all walks of life.

CRED Revenue Model

CRED makes money on referral fees that companies pay to display their products and offers in the app. In addition, financial institutions have access to financial data collected from users to tailor their offerings accordingly.

Through CRED, you can access products and offers from companies that have paid to access Discover. Some of the offerings include fashion boutiques, spas, Amazon gift cards and more. These offers give your users a variety of rewards to choose from. As a result, it attracts users’ attention. CRED receives compensation from the company every time a user uses CRED’s currencies in the app to select an offer.

CRED does not have an individual best source of income. CRED provides a wide range of products/services.

CRED Pay was formed in collaboration with Razorpay and Visa. It gives brands a D2C channel that offers them an on-spot transaction experience on their application.

RentPay from CRED allows tenants to pay their monthly rent by credit card, and the amount is transferred directly to the owner’s bank account. The biggest benefit available here is that the application aids the consumers in getting interest-free credit time for rentals and allows users to make the reward points on their credit cards. CRED takes a fee of 1-1.5% on transactions from its consumers, varying according to the consumer’s credit card network.

Is the CRED app secure?

The CRED application is approved by the RBI. Therefore, it is safe.


CRED partners to examine incentives for companies to apply. In turn, these companies’ customers become consumers who exchange CRED coins for offers. Now that more credit card customers are using the app, they can get more personal financial information. Financing institutes like banks and credit card companies benefit from such a comprehensive strategy with lower transaction costs for consumers.

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