What Is Cred Flash & How Does It Compete With BNPL Apps?

What is CRED Flash?

Ever since CRED entered the BNPL space with its new offering, everyone has this one question in mind- What is Cred Flash? As I said before, it is a new product of CRED that is giving cut-throat competition to the pre-existing BNPL apps…

What is CRED Flash?

How? You may ask. Just go through this article and you’ll find out!

(A) What is CRED Flash?

CRED Flash is the latest product belonging to BNPL (Buy Now Pay Later) launched by the fintech unicorn CRED. The term Buy Now Pay Later sounds so soothing! Isn’t it? Therefore, CRED Flash offers a “customized spend limit” to CRED Members.

If you’re a CRED Member then, you can use this “spend limit” for payments within the CRED app or to pay CRED’s 500 merchant partners through “CRED Pay.”

The key feature?

You’ll get a 30-day repayment period for your CRED Flash spend!

(B) How does CRED Flash work?

Let me explain it briefly-

  • Suppose you want to make a purchase (spend money) say ordering food from Zomato/Swiggy or booking a service from Urban Company. 
  • You can use “CRED Flash” to make seamless payments.
  • You can repay the amount spent through CRED Flash within 30 days without any additional charges.

(C) Regulatory Context of CRED Flash

CRED Revenue

Do you know why CRED Flash became famous? Apart from repayment within 30 days without any additional charges and being a BNPL product, the time of its launch made it the talk of the town! Here’s how-

In the ever-evolving world of finance, where Buy Now Pay Later (BNPL) apps have been making waves, a recent twist has caught everyone’s attention- the RBI’s crackdown on popular players like-

This move has sent shockwaves through the fintech industry, raising questions about regulatory ambiguity. 

Now entered CRED Flash, the latest innovation from CRED, led by CEO Kunal Shah, a seasoned player in the fintech game. With over a decade of experience, Shah understands the importance of playing by the rules and putting consumers first. 

His mantra? 

No shortcuts, just smart moves. As the fintech landscape transforms, regulatory clarity becomes the name of the game. By tackling these challenges head-on, CRED Flash aims to revolutionize the BNPL space while staying on the right side of the law. 

It is no less than a wild ride as finance meets innovation in this high-stakes game of regulatory chess!

(D) How does CRED Flash compete with other BNPL Apps?

CRED Flash is competing with other BNPL apps in the following ways-

AspectsCRED FlashOther BNPL Apps
Customize Spent LimitAvailable to CRED membersVaries across apps; some have fixed limits, while others adjust based on user behavior.
Repayment PeriodOffers a 30-day repayment period for CRED Flash spend.Repayment periods differ; some offer shorter or longer windows. 
Frictionless ExperienceEliminates OTP hassles, external app switching, and checkout failures.Varies; some apps still rely on OTPs and manual data entry.   
Regulatory ComplianceTakes a cautious approach, prioritizing consumer care and adhering to regulations.Compliance practices vary; some may face regulatory challenges. 
Backing & Financial PartnersBacked by Parfait Finance and Investments Pvt Limited, an RBI-registered NBFC.Other apps may have different financial partners.
Eligibility CriteriaCRED Flas is available exclusively to CRED members who meet certain creditworthiness criteria.Other BNPL apps may have broader eligibility, catering to a wider user base. 
Merchant PartnershipsCollaborates with 500 merchant partners for seamless paymentsOther apps may have varying merchant networks and potentially more or fewer partners.
User ExperienceAims for a frictionless experience reducing checkout complexitiesUser experiences vary; some apps may still have cumbersome processes. 
Credit Score ImpactCRED Flash’s BNPL usage impacts a member’s credit score.Other apps may or may not report BNPL usage to credit bureaus.
Interest and FeesOffers a 30-day interest-free period for repaymentOther BNPL apps may have varying interest rates and fees. 
Security MeasuresCard tokenization technology ensures secure transactionsSecurity practices differ; not all apps implement advanced security features
Tap to Pay FeaturesIntroduced the “Tap to Pay” feature for secure credit card payments directly from phones.  Not all BNPL apps offer this feature; it’s unique to CRED.
Customer SupportCRED emphasizes customer care and prompt resolution of issues.  Customer support quality varies across apps.
Integration with subsetsCRED Flash seamlessly integrates with CRED Pay for payments. Other apps may or may not have similar integrations.
CRED Flash vs Other BNPL Apps

However, you must remember that the choice between CRED Flash and other BNPL apps depends on your preferences and needs. CRED Flash stands out by combining convenience, compliance, and innovation! If you have tried other BNPL apps/cards, then please share your experience in the comment section below…

(E) Benefits of CRED Flash

In the above table, you read the features of CRED Flash that make it stand out in the crowd. In this section, we will dive deeper into those features that serve as awesome benefits to the users-

(E.1) Customized Spend Limit

CRED Flash provides a personalized spending limit to its members, allowing them to use it for payments within the CRED app or at CRED’s 500 merchant partners through CRED Pay. The standout feature is the 30-day repayment period, giving users flexibility in managing their expenses without immediate pressure.

(E.2) Frictionless Experience

CRED Flash aims to eliminate common pain points experienced during payments-

  • OTP Hassles: Users no longer need to deal with one-time passwords (OTPs), streamlining the checkout process.
  • External App Switching: Payments can be made seamlessly within the CRED ecosystem, saving users from switching between multiple apps.
  • Checkout Failures: High failure rates during checkout are minimized, ensuring smoother transactions.

(E.3) Regulatory Compliance

In the face of scrutiny from the Reserve Bank of India (RBI) towards BNPL apps, CRED takes a cautious approach by prioritizing consumer care and ensuring compliance with regulations. This helps in maintaining trust and stability in the service.

(E.4) Powered by Parfait Finance and Investments

CRED Revenue & Losses

CRED Flash’s BNPL offering is backed by Parfait Finance and Investments Pvt Limited, an RBI-registered NBFC, ensuring transparency and adherence to financial norms. Users can have confidence in the reliability and legitimacy of the service. However, you must note that the current financials of CRED aren’t that eye-catchy! Cred’s revenue increased by 4.4X to Rs.393 Cr while the losses surged to Rs.1,279 crore in FY22.

(E.5) Tap to Pay Features

In addition to CRED Flash, CRED introduces the “Tap to Pay” feature, enabled by NFC technology on Android devices. This allows users to make credit card payments directly from their phones with just two simple steps- unlocking the phone and tapping the merchant’s PoS (Point of Sale) machine. Secure card tokenization technology ensures that card data remains safe & private and not shared with merchants.

(E.6) CRED’s Vision

As cited in the table in the previous section, CEO Kunal Shah emphasizes consumer well-being and ethical product development, highlighting the importance of avoiding shortcuts and maintaining regulatory compliance. This commitment ensures that users can trust CRED Flash for their financial needs.

In a nutshell, CRED Flash offers a seamless experience, regulatory adherence, and secure transactions, making it a hassle-free option for users looking for BNPL services.

Note: We have already explained the “CRED business model.” You can check out the article for detailed information.

Are you planning to use CRED Flash? If yes, then put down your queries in the comments below!

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Published By: Supti Nandi
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Girish Sahay
Girish Sahay
2 months ago

Looking to explore this new offering by Cred!