We all have seen the impressive and creative ads that CRED makes. They pick a celebrity and showcase them in a way we couldn’t have imagined, and their ads couldn’t get any better. But have you ever wondered how CRED earns its revenue to make the crazy ads we enjoy so much? We have, and so, in this article, we will talk about what is CRED and how CRED makes money.
What is CRED?
CRED is a fintech company founded in 2018 by the co-founder of the payments platform Freecharge, Kunal Shah. He sold Freecharge to create CRED, which is one of the best applications in the market when it comes to paying your bills.
CRED was one of the fastest-growing startups last year and even achieved the status of a unicorn, i.e., has a valuation of over $1 billion.
The application is definitely worth the hype, as it is very easy to use and has a user-friendly interface. If you are a regular credit card user and pay bills through apps, CRED can be the best app for you, as every time you make a payment, you earn great rewards.
How does CRED earn money?
Like any other business, CRED also has to earn money. Despite giving away rewards after every transaction, CRED remains profitable. It earns money in two ways:
- Product and offer listing fees
- User’s financial data
Product and offer listing fees
CRED has a lot of users visiting its app and which makes it the perfect place to display the products and offers from businesses that pay a specific fee to CRED for their Discover platform.
The offers that are available on the app range from fashion retailers to Amazon gift cards. It is safe to say that you will always find the right offer for you.
These offers are the perfect tool to attract attention. Every time you pick an offer by redeeming the CRED coins you have collected, that particular business pays a certain fee to CRED for sending them business. To date, this is the primary source of revenue for the application.
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User’s financial data
When you start using the CRED app, you are in a way consenting to provide your financial information to them. So, as you continue to pay your bills and use the different features of the app, CRED collects your financial data, which they would use to provide you offers accordingly in the future. This acts as their secondary source of income.
However, financial institutions are always on the lookout for the most feasible customers for their services such as credit cards, loans, and other services. As the users of CRED are frequent visitors of the app, it is easier to collect financial data on them and that makes them the perfect candidates for financial institutions.
So, financial institutions like banks and credit card companies pay a certain fee to CRED to obtain access to the data that has been collected by them or to advertise their products or services directly on the app to their customers.