HomeBusiness ModelsCRED Business Model - How CRED Makes Money?

CRED Business Model – How CRED Makes Money?

CRED is a financial management platform that rewards credit card users for paying their bills on time. The platform strives to encourage responsible credit behavior by providing different rewards and benefits to its users.

In today’s society, with a focus on financial management, platforms such as CRED have transformed how people manage their credit card payments. CRED helps manage several credit cards and provides users with information on their credit scores. Users with higher credit scores can access special rewards when they pay off their credit card bills using the application. 

In this post, we will take a look at CRED’s Success Story and Business Model in detail.

CRED Success Story

CRED Business Model – How CRED Makes Money?

CRED Establishment

CRED was established in 2018 by Kunal Shah, a well-known entrepreneur who had success with his earlier project, FreeCharge. The story of CRED founder Kunal Shah is very inspiring. Kunal, the founder of CRED, began working at the age of 15 to support his family during a financial hardship. He continued working while pursuing his bachelor’s degree BA in philosophy. Despite a normal background not from IIT or IIM, Mr. Kunal established two FinTech Startups – CRED and FreeCharge. CRED is the second fastest Indian startup to become a unicorn, with a valuation of over $1 billion. 

Early Struggles

The six-year-old brand CRED faced early challenges in terms of attracting users to the application. They started by offering rewards and cashback to users for making timely payments of credit card bills. However, it was not enough. Soon, the company realized it and pivoted by introducing bill payment, credit score tracking, automated bill payment, and other options. They also invested heavily in marketing. Soon CRED efforts paid off and they started getting more and more users on the app.

CRED Company Details

IndustryFinancial Services
Founder and CEOKunal Shah
HeadquartersBangalore, Karnataka, India
Employees950+ (2024)
Annual RevenueINR 1400 CR
Products & ServicesBill Payment, Financial Services

Business Model of CRED

CRED’s business model focuses on driving user engagement and retention. CRED generates revenue by utilizing its user base and strategic partnerships in its business model. By utilizing membership fees, forming partnerships, monetizing data, and advertising, CRED can support its activities and provide benefits to its members.

Revenue Streams of CRED

Membership Fees

One main source of income for CRED comes from its membership fees. Although joining the platform is free, users must have a high credit score in order to use its premium features. CRED capitalizes on this exclusivity by providing different membership tiers on a subscription basis, each granting access to various benefits and rewards.

Partnerships and Collaborations

CRED partners with multiple brands and financial institutions to provide special offers and discounts to its members. By forming strategic partnerships, CRED increases its value and earns income by participating in referral programs and revenue-sharing agreements with partner organizations.

Data Monetization

Utilizing valuable user data, CRED takes advantage of opportunities to monetize data. CRED provides businesses and financial institutions with valuable market intelligence by anonymizing and aggregating user insights. Utilizing this data-focused strategy allows CRED to create more sources of income while maintaining user privacy and security.


CRED uses focused advertising and marketing strategies to generate more revenue from its platform. CRED provides advertisers with a highly involved audience for their offerings by utilizing its user base and data analytics expertise. CRED’s advertising revenue is influenced by sponsored content, brand partnerships, and in-app promotions.

Interest Income

CRED generates interest revenue by briefly retaining funds before sending them to credit card companies. This interest grows gradually and contributes to the total revenue of CRED.

CRED’s Success Factors

User Experience

CRED’s appeal is centered on its flawless user interface. From the instant users access the app until the quick finalization of payment transactions, every interaction is carefully crafted with precision and elegance. The easy-to-use interface, combined with simplistic design features, makes sure that users can easily move around, promoting a feeling of contentment and dedication.

Rewards and Incentives

Who doesn’t enjoy receiving rewards? CRED utilizes the psychology of encouraging user behavior to its advantage. CRED encourages users to stay loyal and speak positively about the platform by providing appealing rewards such as cashback and exclusive deals, leading to increased engagement.


CRED’s gamification strategy is a crucial factor in driving user engagement. The application includes elements like rewards, levels, and challenges to enhance the enjoyment and interactivity of paying bills. This method of gamification motivates users to pay their bills promptly and fosters their repeat business.


Security is absolutely essential in financial transactions and cannot be compromised. CRED acknowledges this, and utilizes advanced security measures to protect user data and transactions. Every element of CRED, from encryption protocols to biometric authentication, is strengthened to inspire trust and confidence in its users.

Data Analytics and Personalization

CRED uses data analytics behind the scenes to tailor the user experience. Through examining spending habits and preferences, CRED provides personalized suggestions and information, enhancing the user’s experience.

Customer Support

Outstanding customer service can often be the deciding factor in the digital platform industry. CRED excels in this aspect, thanks to its devoted team that is committed to promptly addressing user questions and issues.

CRED Funding

CRED has raised $1.07 billion in funding in various rounds since its first funding round in May 2018. The latest round of CRED was in June 2022 where CRED raised $80 million in a Series F funding round.

Challenges and Overcoming Them

Trust and Security Concerns

Despite experiencing quick expansion, CRED has encountered various difficulties, notably in the areas of trust and security. Given the sensitive nature of their financial information, users are understandably hesitant to share their data with third-party platforms. Establishing and upholding trust has been an ongoing effort for CRED.

Market Competition

Competition is intense in a saturated market filled with financial management apps. CRED is up against tough competition from well-established companies and new startups, all competing for a piece of the market share. Remaining ahead of the competition necessitates ongoing innovation and a thorough comprehension of user requirements.

Regulatory Compliance

CRED navigates the regulatory landscape of the fintech industry with diligence and compliance, despite its challenges. CRED ensures continuous operations and reduces risks by following strict regulations and being proactive in addressing compliance issues.

Strategies for Overcoming Challenges

Focus on Security Measures

Security has been CRED’s top focus since the beginning, putting in place strong measures to protect user information. Every element of the platform, from encryption protocols to biometric authentication, is carefully crafted to prioritize security. CRED’s goal is to alleviate worries about data privacy and security by building trust with its users.

Enhancing User Experience

 In a world that is becoming more and more digital, the user experience is extremely important. CRED consistently improves its platform by incorporating user feedback, aiming to provide a smooth and user-friendly experience. Every update is focused on improving user satisfaction and keeping them engaged, from speeding up load times to adding new features.

Future Prospects

Looking ahead, CRED is poised for further expansion and innovation. With plans to diversify its offerings and expand into new markets, CRED aims to solidify its position as a leading player in the fintech industry and deliver long-term value to its stakeholders.

CRED has recently launched Peer-to-Peer UPI payment on its app. It is called CRED UPI. Now CRED members can transact with CRED or non-CRED members by searching their details or UPI IDs.

Learning from CRED Success

Importance of Innovation

The importance of innovation in today’s competitive environment is highlighted by CRED’s success. Through innovative changes to the credit card payment process and the addition of unique features such as CRED Coins and CRED Experiences, CRED has set itself apart from conventional banking applications and drawn in a dedicated group of users.

Prioritizing User Experience

CRED’s success can be attributed to its unwavering emphasis on user experience. From the smooth registration process to the user-friendly app interface, every part of the CRED experience is designed to please users and go beyond their expectations. CRED’s dedication to excellence has resulted in earning the trust and loyalty of millions of users throughout India.

Leveraging Technology

CRED utilizes technology to provide a smooth and tailored user experience. Through the utilization of AI, machine learning, and data analytics, CRED can analyze user actions, detect patterns, and provide specific suggestions that boost customer interaction and loyalty.

Building a Strong Community

CRED’s achievements are based on having a dedicated and active user community. CRED has established a devoted and encouraging user base by promoting a feeling of inclusiveness and friendship among its members, leading to advocacy for the platform and driving its progress and achievements.


In the ever-evolving landscape of fintech, CRED stands as a beacon of innovation and customer-centricity. By prioritizing user experience, embracing innovation, and fostering trust, CRED has carved a niche for itself in the hearts and wallets of millions. As we unravel the key success factors behind CRED’s meteoric rise, one thing becomes abundantly clear: understanding CRED is not just about transactions; it’s about transformation.


1. How does CRED differ from other credit card management apps?

CRED stands out for its focus on rewarding users for responsible financial behavior, in addition to its seamless bill payment and management features.

2. Can anyone join CRED, or is it exclusive to certain users?

While CRED is accessible to most users, certain eligibility criteria apply to ensure the security and integrity of the platform.

3. What kind of rewards can users earn through CRED?

CRED offers a variety of rewards, including cashback, discounts, and access to exclusive offers from partner brands.

4. Is CRED available only in India, or does it have plans for international expansion?

Currently, CRED primarily operates in India, but there are discussions about potential expansion into other markets in the future.

5. How does CRED prioritize user privacy and security?

CRED takes user privacy and security seriously, employing industry-leading encryption and security measures to safeguard user data and transactions.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.