- By utilising the BBPS, Cred not only aligns itself with best practices for payment security but also ensures that users continue to earn rewards while managing their credit card bill payments.
- Such rewards add a layer of incentive for users, encouraging responsible credit use and timely payments while enhancing customer loyalty.
In an era marked by rapid advancements in financial technology, the Bengaluru-based fintech firm Cred has taken a significant step forward in enhancing the bill payment experience for Indian credit card holders.
The fintech firm has received certification from NPCI Bharat Billpay to operate as a customer operating unit (COU) on the Bharat Bill Payments System, the company said.
The certification is not merely a regulatory milestone; it embodies the commitment of Cred to streamline the bill payment process for its users while ensuring enhanced security standards in an evolving digital landscape.
A new era of bill payment
The Bharat Bill Payments System, managed by the NPCI, serves as a crucial infrastructural asset in India’s digital payment ecosystem.
Acting as an interoperable and integrated platform, BBPS enables consumers to make recurring online bill payments seamlessly. With the introduction of Cred’s COU certification, users of the platform gain access to all billers that have integrated with the BBPS, positioning Cred as a significant player in the bill payments arena.
The development follows a recent directive from the Reserve Bank of India (RBI), which mandated that all credit card bill payments made via third-party applications—including Cred, PhonePe, Amazon Pay, and Paytm—be routed through the BBPS.
The regulatory shift aims to centralise bill payments, fortifying an environment characterized by user-friendly digital transactions and bolstered security.
The implications of this integration are profound. By utilising the BBPS, Cred not only aligns itself with best practices for payment security but also ensures that users continue to earn rewards while managing their credit card bill payments. Such rewards add a layer of incentive for users, encouraging responsible credit use and timely payments while enhancing customer loyalty.
Introducing CRED Guarantee
In tandem with the certification, Cred has made headlines with the launch of CRED Guarantee, a forward-thinking feature designed to support users in managing their credit card outstanding amounts more efficiently.
With CRED Guarantee, users can rest assured that as long as they clear their dues in full through the platform before the due date, any late fees incurred will be covered by Cred.
The innovative approach not only alleviates the pressure surrounding bill payments but also fosters financial discipline among users.
Kunal Shah, the founder of Cred, emphasised the importance of this certification: “With the COU certification, we can settle payments on time, every time, and guarantee its settlement.”
The statement reflects a broader vision for Cred that hinges on empowering its members through innovative products and solutions, thus enhancing their overall financial journey. Shah’s assertion also underscores the vital role that digital public infrastructure plays in fostering fintech innovation in India.
Significant impact
Cred’s achievements in the realm of bill payments cannot be understated. In July alone, the platform facilitated over INR 15,000 crores in credit card bill payments via the BBPS.
Moreover, the COU certification enables Cred to establish partnerships with major billers and banks that have also joined the BBPS, potentially expanding the range of services it can offer to users.
The statistics in this domain are compelling; Cred claims that more than 14 million members have collectively settled credit card dues exceeding INR 13.2 lakh crores on the platform.
Furthermore, approximately 4 million users reported improvements in their credit scores, attributable to their timely payments within a span of 12 months.
The financial prudence fostered by Cred’s services is further highlighted by the INR 981 crores in late fees that members have managed to avoid in the past year—a testament to the positive financial behaviors encouraged by the platform.