The company CRED is a startup venture and has come up with India’s first unique business idea of an application that offers rewards to their customers for credit card bill payments on time. It was established by Kunal Shah who was the former founder of the company Freecharge in the year 2018 April. The founder of the application Kunal Shah launched CRED with a goal to make an exclusive community for India’s most creditworthy and trustworthy individuals. The application CRED gives an opportunity to help and manage all the credit card payments in an easy manner. It also reminds us about your spendings, monitors our payments, and offers on credit cards.
How Did The Application Get Started?
The founder Kunal Shah always had a vision of making everyone’s life better and easier. In 2015 he sold the company Freecharge and started recharging more about his vision to achieve. Through his research he finds that there are so many automated systems is present in our developed nation such as petrol pumps with no attendant, supermarkets with no cashier and so on but there is no automated system such as a trustworthy application that offers the individuals for the right amount of payments of their credit card bills on the right time with no additional charges.
Kunal Shah the founder of the company said that there are thirty hidden exorbitant interest costs and additional charges that haunt you even if you are paying a single rupee less than the full bill. Then a problem arrived: why would an individual pay their credit card bills by using an application, in that case, he came up with the idea of giving rewards to trustworthy users of credit cards, especially those who pay their bills of the credit card on time. With this business, strategy CRED started its journey and entered the market in the year 2018 of April.
Related Article: Paytm (India): An Endeavour to Make Cashless Economy for Indians for Simpler Life
The Features of CRED Application
The application CRED helps to manage all your credit cards in a better and easy process in one place. Whenever an individual is paying their credit card bills by using the CRED app they will receive some CRED coins which can be used later to get discounts on different brands partnered with the app CRED. The app reminds you about the credit card limit and tracks everything to avoid any additional charges, it also analyses hidden charges and the total spending of the customers.
Some more features of the CRED App are as follows:
– CRED Powerplay: it is the latest feature of the app CRED after becoming the official partner of IPL 2020. It offers 100% cashback on the whole bill provided that the bill is paid in both the innings of the very first six overs. Moreover, the winner would get an exclusive position in the virtual or online fan box.
– Smart Statements: this feature of the app servers the customers to streamline the expenses by estimating the credit card statements.
–CRED Protect: the feature CRED protect of the app reads out the statements from the mail and provides the information regarding- expense bifurcation, bank charges, due date, balance.
The Business Model of the CRED App
Presently there is no such business model for the CRED app. The startup company is not focused to make a profit but is mainly focused to expand its user base. Though the main vision is to make a trustworthy company and community that will further create the business model for the company. Different sources claim that the company is earning money from brands that are listed in their CRED coin redemption and the company might continue to use this in the future as well. There is an assumption that CRED will use its data to monetize the business. Presently the app CRED has created a database of their users based on interest, rewards used, payment history of the bill, and bank details but they don’t share this information with any third party. Thus, the company can do various uses of users’ data in the future and can create a profitable model of business around it.
How Does The App Work?
– Firstly you need to download the CRED application and log in with the mobile number.
– after the account is created the app checks with the credit card linked to the given registered phone number.
– if the credit card score of the user is more than 750 the user gets access to the app or else the users are added to the waitlist.
– once you get access to the app CRED needs to access your mail id to read and check the credit card transactions like statements of the applicable services, due dates, and so on.
– now if you pay your credit card bill you are eligible to earn CRED coins as rewards. Rs 1 is equal to one CRED coin. These coins are used to claim the rewards which are offered.
– Users are also able to burn the CRED coins to get cashback and that cashback is directly added to the user’s credit card.
The startup company CRED is not only focused on making a profit but is mainly focused on expanding its user base and helping to manage all your credit cards in a better and easier process in one place. CRED is a creative fintech company that focuses to bring a revolutionary change in the mindset of individuals with respect to personal finance and credit cards. Currently, the company is aiming at the particular niche of credit advantages and focuses to take the first movers benefits in the category. With the help of its marketing strategies, the company CRED is doing a decent job in fetching its customers by using the latest digital marketing techniques.
Also Read: $4.2M Seed Funding Raised By Akudo from Y Combinator and Others
