CRED’s attempt to gamify behavioral finance !

CRED has embarked on a journey to change the behavioral design of the society. Currently it has a client base of approximately 30 lakh customers and processes more than 20% of credit card transactions through its platform. Being a startup, huge cash burn can be expected. However, it has managed to capture the attention of the most creditworthy customers by identifying problems and pampering them with offers they could not resist. In FY 22 Cred’s revenue jumped by 4.4X, which is no surprise. We will try to understand what makes Cred unique.

1. Identifying the problems

CRED has accurately identified the below issues that credit card users face and it built its offering as a solution to these. Below are the pain points of credit cards.

  1. Extra interest
  2. Late fee
  3. Hidden charges

2. Irresistible offers to build a customer base

Building a good customer base is a challenge for every company. On boarding customers with minimum hassles is another challenge for any company to overcome. Both of these were successfully overcome by attracting customers with mouth watering offers and quick eligibility checks for seamless onboarding. Few of the propositions are mentioned below.

  1. Incentives
  2. Cashbacks
  3. Flight tickets
  4. Free Rent month etc.

3. Being accustomed

CRED made it easier for the average credit card user to check charges levied. Earlier one had to open the credit card statements and go through interest rates, charges, late fee etc. Now, there is no need to remember the due dates, expiry dates etc. It attempted to gamify the solutions, with a chance to win something on most occasions. Indians by nature love mystery and rewards, which was perceived as a bargain deal. Earlier no one received any cash back for credit card payments. It successfully tapped into the Indian psychology.

4. Cred rewards and revenue model

It’s users have a credit score of above 750. With such a high quality customer base, it can leverage it in multiple ways. Most of the business possibilities are already implemented as per the below list and has the potential to build a strong bottom-line for the company.

  1. Promoting merchandise

‘Cred Pay’ is a feature which allows you to use CRED coins for purchases and win 10% off. It is a gamified version of collecting coins and then spending. It has also launched ‘Cred Store’, where one can buy merchandise of different brands.

2. Travel

A section in the app promotes holiday packages. Creditworthy individuals are always in search of a good deal and this feature will definitely attract attention.

3. Targeted advertisement

Targeted advertisement is already in place and being promoted in ‘Store’ and ‘Travel’ sections of the app. This can be the biggest revenue churner going forward. Look at ‘Google’ for instance.

4. Lending and other financial services

Lending products are already being built. It launched ‘Rent Pay’ and ‘Credit line’ products in April 20. ‘Credit line’ is currently being offered at approximately 17% interest rate. The product is also mentioned as ‘Cred Cash’ in the app.

In a recent development on May, 2022, CRED has partnered with Mastercard for rent and tuition payments.

Many other services are in the offering pipeline, considering the customer base is really strong, creditworthy and willing to spend. CRED has excellent data regarding the spending habits of it’s subscribers, which may prove to be the ‘Jewel in the Crown’ in the coming years. Remember, data is the new oil. ‘Cred’ reminds me of ‘Reliance JIO’ and it’s strategy of onboarding clients. The possibilities are endless. Will it be able to change the financial behavior of customers in days to come?


Q. What is Cred’s value addition for it’s users?

Ans. Cred has partnered with best brands and offers seamless experience at the end of every CC bill payment cycle.

Q. What are the different ways to earn rewards on Cred?

Ans. a. For every Rupee cleared via the platform you can earn a Cred coin b. Earned Cred coins can be redeemed for exclusive rewards on premier brands c. Every referral helps you earn 10 Gems.

Q. How can you become a member of Cred?

Ans. One can apply on the Cred app. However, Experian credit score of 750 and above is mandatory. In short Cred has a community of credit worthy members.

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