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Unique Ways in Which CRED Makes Money in 2022 | CRED’s Business, Revenue Model



How Does CRED Makes Money

CRED is India’s first application to automate the payment of credit card bills. It is an Indian fintech company and the main feature is reward-based credit card payments. CRED app allows you to manage and settle all your credit card payments. It offers an exclusive discount on credit cards and also keeps track of our spending.

CRED earns money through offer listing fees. The businesses that list contains also pay a commission to CRED when a user purchases their products. CRED’s business model includes a second source of revenue through the collection of financial data. In simple words, they use your data to sell more relevant financial products that earn them high commissions.

CRED has a customer base of over a whopping 6 million users. It has turned into a startup unicorn with $2.2 billion valuations in a short span of time. Here we are providing details like what is CRED, CRED business model and methods on How does CRED Make Money in India?

What is CRED?

CRED is an application that is available on the app store that provides rewards to users for paying their bills using this app. It is very easy to use this application. The CRED app features an elegant UI and UX design. These rewards range from free products for CRED coins to cash backs, and many more.

If you are a credit card holder and pay credit dues, rent and other bills via any other app, you can use CRED to earn the best rewards. CRED is a platform that assists to manage multiple credit cards and helps in making on-time credit card payments. This app provides users with an instant credit line and enables a safe space for person to person lending between high trust individuals at interest rates which are more beneficial than the traditional lending sources.

How does CRED Work?

CRED provides offers by collaborating with enterprises. Businesses gain exposure and grip on the platform where consumers are spending money. CRED application receives additional offers and displays on their app in exchange. It offers additional rewards for visitors to join and pay their credit cards bills via the app.

CRED allows you to remove the stress associated with managing several credit cards and helps you in making credit card payments timely. The CRED program enables users to earn points for instant redemption.

How Does CRED Works

To manage multiple credit cards with ease you have to download the CRED app and give your mobile number. When a new account is set up, the app links all the cards associated with the mobile number. A person with a credit score of at least 750 is eligible to use our CRED unique app. This app will scan credit card receipts such as service statements and due dates when given access.

Top Ways on How CRED Earns Money in 2022

CRED offers various products and services for making money including Rentpay, CRED store, CRED Stash, Credit card payments and CRED pay. This CRED company makes money by charging businesses a fee to list their products and services on the application. Additionally, they generate revenue through a credit-line business model. The ways on how does CRED make money is provided here.

How Does CRED Makes Money

User Data

CRED gathers information from its users when they pay bills and use the app to provide them with better offers in the future. Several financial institutions are looking for the most viable customers to sell their credit cards, loans and other services. CRED users are frequent customers who are valuable to financial institutions. Both bank and credit card firms pay CRED to access its user’s data and directly market to these customers.

Listing Fees

CRED app also charges a processing fee of around 1 to 1.5% on transactions made using this platform for its customers. The app displays products and offers from various businesses that have paid a fee for their platform. There are offers from Amazon gift cards, spas, fashion retailers and many more. These businesses smartly offer a variety of rewards for CRED users and in return gains more attention.

The businesses pay a fee for every time a user picks an offer by redeeming the CRED coins. It is the primary source of revenue for CRED at this time.

Revenue from Advertisements

CRED has users count in lakhs and it tracks the spending of users. The tracking is helpful to optimise advertisements to encourage more spending through the platform and earn commissions on sales of those products.

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CRED has partnerships with “Man Matters” and “The Man Company”, and users may use CRED Pay to purchase their products. It is known as the “One-Tap Payment Method”. The payment is made using a credit card, and you can also use Cred Coins to receive a 10-15% discount.

Cred achieves this by using the payment gateway services. They will associate with additional brands that si helpful to them to grow their revenue in future.

Affiliate Income

Cred partners associated with various businesses who offer their products to the users on the “Discover” platform. It provides Cred users with a greater variety to choose from while redeeming their coins. On the other hand, businesses gain from visibility and draw user attention. Every time user picks an offer from the app, the business pays a fee to Cred for sending the business to them.

CRED Stash

In basic terms, it enables you to obtain personal loans using your credit cards. We have to undergo a lengthy process of submitting several documents and demonstrating collateral to obtain the loan. Individuals with credit cards earn a solid income and utilize the Cred app.

Cred has formed partnerships with banks and operates as a go-between for banks and Ideal candidates to make loans. It charges banks an organisation fee of 1% for bringing the candidates.

Rent Pay

Users can pay rent using a credit card via Cred’s rent pay feature. Card collects a transaction fee of 1% to 1.5% for the rent payment. Cred claims to have handled about 50 crores in rent payments to date. If you consider these revenue streams cannot provide a significant quantity of revenue.

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Partner with brands

Nowadays, many direct to consumer firms have joined the market, these enterprises sell directly to consumers via websites. In general, their products are of the highest quality, but they struggle a lot with marketing. As Cred users have a high purchasing power and are considered premium users, CRED assists them in selling their products by advertising them on the website.

Cred makes money in two ways i.e E-Commerce platform and commission.

CRED Business Model

CRED works on a passive business model where they get revenue without much overhead. There are three parts of a CRED business model. They are listed here.

CRED Customers:

CRED users who are already using CRED pay to pay their credit card bills are customers. By using CRED, they will get additional benefits for performing the same activity of paying their credit card bills via app.


CRED app features are designed with beautiful UI and UX design. Users can sign up on the app and see all the available offers by paying their credit card bills. You can also earn CRED coins which you can redeem for the rewards.

Businesses that Display Offers on CRED:

Cred has tie-up with several businesses to provide offers to its users. Those businesses will display offers for the users which they can redeem.

FAQ’s on How Does CRED Make Money

1. What is the profit for CRED?

As per entrackr, CRED has earned zero revenue in the year 2019. The only income generated was INR 3.03 crore in the form of interest on their deposits. The company overall cash burn stood at INR 64 crore.

2. What is the CRED business model?

CRED’s business model relies on making revenues through the income from offer listing fees from businesses. The potential for the data collected from the app seems to be a viable monetization opportunity in the future for lending based services.

3. Does CRED charge money?

CRED is absolutely free app for all credit card users to pay bills from. In return for paying bills, users will get cashback and rewards from multiple businesses.

4. How does CRED make money?

Cred makes money by charging a listing fee for products and offers that businesses want to display the app user’s information. The financial data gathered from users is also made available to financial institutions to gain additional relevant offers.

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