How CRED Works? CRED Business Model & Revenue Model Everything in 2022 (Updated)

cred business model

Yes i know you know about cred and now in this article i am going to write about cred business model and how they make money.

With the valuation of $ 2.2 billion, The innovative fintech start-up CRED has entered the unicorn club, in just after two years of its launch CRED, a fintech application serves its users with management and timely payment of multiple credit cards in one place. Available for download on iOS and Android platforms, it simplifies the bill payment process and rewards users for paying their card bills on time.

A reward based credit bill payment app CRED, gets its start as an innovative fintech idea that allow cardholders to pay their correct amount of credit card bills in due time without any extra charge,i.e. with zero extra charges. The app has so much to talk and learn about,we will start with the function strategy of the unicorn and extend it to its business model and revenue.

CRED – How does it works?

cred business model

CRED is a free credit card bill payment mobile application. Available for download on iOS and Android platforms, it simplifies the bill payment process and rewards users for paying their card bills on time.

CRED rewards its users with coins which can be used for prompt purchases through the app or for further exclusive offers.The brand gets its name from CREDit card , on which the app is primarily based. Handling and managing multiple credit cards ,and their bills is one of the main functions of CRED, along with all the bill issues, offers & card updation.

CRED was founded by Kunal Shah in April of 2018, who is best known for his previous company Freecharge. Kunal sold his company Freecharge in 2015,in intention to create something ,which can turn complicated, problematic, professionally & daily used systems into simplified, easeful and quick service.

Kunal found so many products that he could take in the Indian market,but most he was tempted to is the idea, to serve as the digital system that could allow credit-card-holders to pay their exact amount of bills on time, without any extra charge. And the execution of which resulted as CRED.

Rewarding the users with CRED coins ,which can be redeemed with available offers or for prompt purchases through the app , was part of the plan to draw customers; or you can say the answer of Why should anyone use CRED ? What will be better than to be rewarded for your own credit card timely bill payment at zero cost.

CRED is a membership based app,which doesn’t need any paid membership ,but you should have a credit card score greater than 750 to use the app, otherwise you will have been sent to the waitlist.

Getting the app use permission allows CRED to have access to read and scan the credit card receipts with details of bank costs,balance,due dates and bifurcation of expenditures.

One of the main features of CRED is to analyse you expenses, record loan caps and other secret cost so that they can auggest you the way to minimize other extra charges.

CRED’s Business Model

CRED’s business runs on a completely different model ,they don’t charge any commission on bill payments through credit cards, the amounts are paid exact .CRED partners with different businesses to provide different exclusive offers to the customers. These amazing offers can be used as redemption of CRED coins . Fintech draws more & more customers by such great limited offers & sales displayed by its partnership with businesses.

cred business model
cred business model

Also these businesses gain exposure and traction on the platform where numbers of people are made to use their accessed offers.As a result CRED gets more users on the app and more offers to display on the app .CRED uses third party business as the important part of their business model. Unlike other payment apps, CRED allows its users to pay their credit card bills more beneficially, i.e.

Charging no commission and rewarding them with CRED coins which can be used for further offers.The fintech app is very concerned to be loyal for its users.The app allows its user to see and use the available offers on paying the card bills.The more customers use the app,the more will be the benefit for each three ,i.e.- The fintech unicorn, their users & their business partners.

Cred Revenue Model

CRED generates revenue from the partnered businesses, for displaying their offers and products on the platform. Also CRED uses financial datas of the user to provide them further offers and make businesses use them too.

CRED allows its users to have access of the paid accessible products of different businesses and brands,at just free of cost or with great discounts.

Fashion retailers ,simple luxury goods,spas, Amazon gift cards & offer cards are some of CRED’s displayed offers.These can be accessed through cred coins.

CRED makes money every time ,a user picks an offer by redeeming the cred coin.
Financial institutions are always looking for reliable and trusted customers to use their credit cards, loan offers and other products.CRED gives access to all the collected financial datas of user to such institutes in order to make money.They also use these data to send further offers to users.

Unlike other businesses, or more specifically payment businesses depending on a single best source of revenue, CRED has various sources of revenue that can’t be said primarily.

Some of these sources include CRED stash, CRED Pay ,CRED rentpay,Credit Card payments and more.


cred pay
cred pay

Partnership with Visa & Razorpay to develop the CRED pay ,resulted as the platform to provide brands instant payments on purchases and sales using the D2C mechanism.

CRED Stash

Developed as a digital lending platform available for personal credit loans. This is completely online without any commission interest charge as charged in bank.

CRED store

Digital platform where cred coins can be used to get products and discounts by different brands displayed in the app.


So far you have completely seen what CRED is ,how it works & the way it makes money. CRED is one of the innovative credit card payment fintech or we can probably say the only one.
Their way to generate revenue is a completely new idea benefiting all that are connected with the platform. That’s why it has achieved this feat in such a short span of time. The company was reported to have a valuation of $2.2 billion. And they will surely reach more heights.


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