CRED, the reward-based payments platform, has introduced CRED Money, a new financial management tool designed to consolidate balances and transactions from various bank accounts, wallets, and UPI IDs into a single view. This feature not only facilitates recurring payments but also offers detailed insights into spending habits.
CRED Money enables users to analyze their financial patterns without needing to disclose their bank account details. Instead, the app retrieves information from account aggregators like banks, mutual funds, and insurance providers.
The platform’s services include capabilities such as tracking forgotten investments, tax refunds, and managing recurring payments like SIPs and insurance policies. Additionally, it helps users monitor transactions across banks, UPI IDs, and credit cards.
Built on the account aggregator (AA) framework, CRED Money ensures secure and encrypted sharing of financial data between authorized entities. Experts view this launch as a strategic move by CRED to enhance daily and weekly user engagement, following its April 2023 UPI payment service launch and the September introduction of the vehicle management platform, Garage. The company is also expanding its wealth management offerings, bolstered by the acquisition of Kuvera in February.
This new service provides CRED with valuable insights into user financial statuses, habits, and investments, improving its ability to tailor offerings from both its own services and third-party partners. CRED’s loan products and CRED Mint have significantly contributed to its growth, showing low default rates and high user satisfaction.
On the UPI front, CRED UPI is now the fourth largest UPI payment processor, according to NPCI data. While it trails behind major players like PhonePe, Google Pay, and Paytm, it has outpaced competitors such as Amazon Pay, WhatsApp, and BHIM in transaction volume, processing over a third of Paytm’s transaction value in June.
In FY23, CRED’s primary revenue sources included rental transactions, peer-to-peer loan interest, processing fees, advertising, and listing fees on CRED Marketplace. The company’s operating revenue increased 3.5 times to ₹1,400.6 crore from ₹393.5 crore in FY22, although losses grew slightly by 5.3% to ₹1,347 crore.
