Cred Secures RBI’s In-Principle Approval to Operate as Payment Aggregator

• ByStartupStory     |    April 20, 2024

Cred, the leading fintech firm, has secured the Reserve Bank of India’s (RBI) in-principle approval to function as a payment aggregator (PA), as revealed by a source familiar with the matter.

The approval marks a pivotal milestone for Cred, enabling it to facilitate the seamless movement of customers’ funds to merchants. While this is not the final endorsement or license, which is anticipated within the next six to twelve months, entities with in-principle approval can conduct business operations unless instructed otherwise by the RBI.

Cred, headquartered in Bengaluru, has emerged as the foremost third-party platform for credit card bill settlements in India. Beyond its core service, the company also operates diverse ventures including an e-commerce platform, vehicle management solutions, and a curated travel package service.

Under the stewardship of its founder, Kunal Shah, Cred boasts a user base exceeding 15 million active customers. Moreover, it has carved a niche as the fourth-largest player in the Unified Payments Interface (UPI) ecosystem, commanding a substantial 2.3 percent share of the digital payments market in India.

This development comes on the heels of Cred’s strategic acquisition of Kuvera, a move aimed at venturing into the wealth management sector. With Kuvera’s extensive reach of approximately three lakh affluent customers, Cred is poised to offer an array of wealth products, including mutual funds and fixed deposits, alongside popular offerings such as SIPs (systematic investment plans), international equities through a commercial agreement with Vested Inc, pension funds, and digital gold.

Follow Startup Story