CRED Launches P2P UPI Payments, Limited to Members with 750+ Credit Score
Fintech unicorn CRED has launched peer-to-peer (P2P) UPI payments on its app, enabling CRED members to transact with non-members by searching their contact list and adding phone numbers or UPI IDs. The new payment experience has been introduced following the launch of Scan & Pay in October 2022, which the company expects to see grow in the number of merchants using the service.
To become a CRED member, one needs to have a 750 or above credit score. “While UPI has created a revolution in digital payments with a focus on utility, CRED seeks to move beyond being transactional- creating an elevated UPI experience for members. This experience hinges on making payments instant, secure, and rewarding,” the company said in a statement.
CRED’s UPI P2P Experience also offers payment reminders for recurring transactions, an option to create a custom VPA, and masking of personal details such as mobile numbers from their UPI ID. The service will be limited to CRED members only.
The four-year-old start-up rewards customers for paying credit card bills and has built multiple use cases for its customers including cash, mint, pay, credit card bill payment, max, rewards, store, and travel. CRED reported a net loss of INR 12.79 billion in FY22, even though its revenue rose by almost 340% from INR 950 million in FY21 to INR 4.22 billion in FY22. The company’s losses have more than doubled from INR 5.24 billion in FY21.
In a previous interview, CRED CEO Kunal Shah attributed the losses to the company’s focus on building a community of members and brand building. Despite recording a net loss of ₹1279 crore in FY22, the fintech major has managed to increase its revenue by almost 340% from ₹95 crore in FY21 to ₹422 crore in FY22. The company’s losses have more than doubled from ₹524 crore in FY21. CRED, which rewards customers for paying credit card bills, has built multiple use cases for its customers including cash, mint, pay, credit card bill payment, max, rewards, store, and travel. With the launch of P2P UPI payments, CRED members now have multiple payment options, including offline payments (UPI P2P, Scan & Pay, Tap to Pay), online merchant payments (CRED Pay, CRED flash), and bill payments. The new payment experience has been introduced after the launch of Scan & Pay in October 2022, and as it gains traction, CRED expects the number of merchants to grow.
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