CRED Business Model: What makes cred so unique & popular?

Posted on

Cred business model is the first business model of it’s kind in India. Cred is the first app in India to pay user’s credit card bills on time & it’s founded in 2018 by former Freecharge founder Kunal Shah with the intention of creating an exclusive society with the most credible people in India. Cred gives exclusive discount points on your credit card bill payments & tracks your all credit card expenses.

The most Interesting fact about CRED business model is that it entered unicorn club in just two years of its launching. In business terms, Unicorn club is a group of startups that values over $1 billion. As of april 2021 cred has net worth of 2.2 billion $. This reflects the success of Cred business model & the hardwork done by Kunal Shah, the founder of CRED. CRED business model has attracted giant investors like Falcon Edge Capital and Coatue Management LLP who have funded the company worth $215 Million.

CRED intresting features & How app works ?

Suppose you are a business owner or someone having very busy lifestyle and you own multiple credit cards, in such cases it’s quite usual to forget bill payments on time. Here CRED comes into action, it can schedule & manage your credit card payments with zero processing fees & any comissions.

Moreover, cred provides reward points at all transactions donein due time. CRED allows only those people to join their community who have credit score more than 750. To use CRED app just :

Want to Register Your Company
  • Download Cred app from play store or IOS app store
  • Enter your associated mobile number with credit cards
  • Configure the mobile number and payment types
  • If your credit score is greater than 750 points you will be ready to go
  • If credit score is less than 750 points your application will go into waitlist and will be live only when copmany changes the criteria
  • CRED app will have access to the mail identification to read and scan the credit card receipts, such as due dates, the services’ statements, etc to schedule payments and execute.
  • CRED can manage your all credit cards & transactions at single place
  • Aftery every successful transaction on your credit card bills, you will get certain CRED coins to earn discounts on different CRED partner products.
  • Cred will analyse your overall expenses, miscellaneous costs, and records loan caps & assist you of all this to avoid extra charges.
  • CRED security feature reads email statements with details on balance, due date, bank costs & schedule payments accordingly.
  • The smart statement feature helps to simplify costs by reviewing CREDit card statements.

Many people have doubts about security of this app, the good thing is that CRED is RBI approved app so it’s safe to use. Also it has a huge customer base and is developed by former Freecharge owner Kunal shah that had no security breach reports. Theirfore CRED app is authentic and very safe to use. All the transactions are monitored by RBI thus it’s good & have a lot of benifits, you should start using CRED if you have credit score more than 750 .

Cred Business model

After it’s huge success and such investments everyone want’s to understand Cred’s business model, whether it’s a profit making company or not. The main sources of creds income are the businesses who list offers on the CRED app, The CRED app itself and the card holders who pay bills through the app.

Business model :

How cred makes profit
Cred business Model – How cred earns money
  • As already discussed the criteria for accessing CRED programs is that you must have a credit score of more than 750 . CRED requires to allow user to share certain informations such as credit card numbers, emails to track users’ expenses and dues, credit score, and how you invest your money. CRED rewards CRED coins as rewards whenever you pay bills through CRED on time, these rewards can be redeemed on deals with certain companies & brands.
  • To make the deals happen, CRED have to include sponsered companies and create deals with them.
  • As the customers who use CRED are usually credit card users and thus they are potential customers. This fact attracts companies to partner with CRED.
  • Customers use several payment applications to pay their credit card bill from their bank. But CRED provides more advantages to carry out same transactions across the app.When more people use CRED, they share CRED across their network.
  • CRED application has a attractive & user friendly user interface thus it will attract people to use the app and execute deals

How CRED earns money ?? Revenue model of CRED

  • Cred charges products or companies that list their products or services on CRED application to show them to CRED users.
  • CRED has a quality audience that belong to a good pay scale, thus for displaying them ads CRED charges a decent money to advertisers.
  • CRED charges processing fees of 1% to 1.5% on several transactions such as CRED’s Rentpay and several types of other transactions.
  • CRED store is another source of CRED revenue.
  • Currently, CRED doesn’t have any clear cut earning source and their focus is to increase their consumer base as it is its one of the biggest underrated assets. There could be number of ways in future if we focus on the potential income streams of CRED.
  • Selling customer data / Data monetization is one of the possible sources that CRED can use in future as most companies do. But CRED will not sell data to third parties, but they will use data to optimize and personalize the use of the user interface, as mentioned in CRED privacy policy. The privacy policy can be updated in accordance with product requirements.
  • It’s a well known fact that today in the world, data to companies is just as important as oxygen to patient and can be taken advantage in many forms. Even, CRED points can be redeemed with multiple rewards from its partners. CRED can charge from these companies by making strategic deals.
Cred business model explained

Is CRED a loss making company ?

Not at all, since they offer charges free transaction it doesn’t means they are loss making company. CRED has different sources of earning that are mentioned in the above article including transaction charges on several transactions, CRED store etc.

Who is the founder of CRED business model ?

Kunal Shah, former freecharge founder.

Is CRED totally free ?

No, maximum services of CRED business model are free but it charges for some types of transactions like CRED Rentpay

Is CRED business model privately funded ?

CRED business model has attracted giant investors like Falcon Edge Capital and Coatue Management LLP who have funded the company worth $215 Million.

Is CRED secure to use ?

As CRED is a RBI approved application, thus it is secure to use.


Leave a Reply