Fintech unicorn CRED forays into ‘buy now pay later’ space
- ByStartupStory | February 28, 2023
Fintech unicorn CRED has launched CRED flash which offers the feature of buy now pay later and a customised spend limit to its members that can be repaid in 30 days.
Talking about the perks of CRED flash, the company said, “CRED flash aims to remove the friction of dealing with OTPs, switching to external apps, or high failure rates during checkout. It will also enable members to checkout smoothly without having to wait for OTPs, manually filling out account forms, or typing shipping and billing information.”
The new feature can be used for payments on credit or to pay CRED’s 500 merchant partners through CRED Pay. Members will get a 30-day repayment period on CRED flash spend. CRED’s buy now pay later offering is powered by Parfait Finance and Investments Pvt Limited, which is an RBI-registered NBFC.
This feature comes amidst BNPL apps having faced multiple crackdowns from India’s central bank RBI. The suppression is faced by companies like Uni, Slice, and Lazypay, among others.
CRED CEO Kunal Shah commenting on fintech ambiguity said, “I have been in fintech for over 12-13 years now including the years I spent building Freecharge. The regulations in fintech have always been around. In general building products takes a lot of care about the consumers and not taking shortcuts is always the right thing to do.”
CRED along with CRED Flash, announced the launch of “Tap to Pay”
feature, which is an NFC-enabled Android device enabling users to make credit card payments from their phone using ‘Tap to Pay’.
“Tap to Pay uses secure card tokenization technology to store card tokens on the device. When members tap their phone on a card reader, this token data is transferred via NFC to the reader to initiate a payment. This way, the card data is never shared with the merchant – making transactions safe and secure,” the company added.
CRED had to walk a tightrope when it recorded a net loss of ₹1,279 crore in FY22 even though its revenue jumped by almost 340 per cent from ₹95 crore in FY21 to ₹422 crore in FY22. The company’s losses have more than doubled from ₹524 crore in FY21.
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