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Monday, April 22, 2024

Cred Business Model: How it Become a tech giant?

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Cred Business Model is a new money transfer technology from India to its abroad clients and friends in the global market. It is the future of money transfer and is the most popular business model.

He saw the need for an affordable, user-friendly, secure, fast electronic cash transfer platform accessible across multiple currencies.

How Does Cred Business Works?

The cred business model has evolved with the advent of newer technology and added value to the existing system. Due to the rapid success of this model, Kunal and his associates have been working on an updated version of this model, which will also incorporate merchant services on the platform.

They are working on it and expect it to launch in the next few months. One of their main objectives is to make the whole process of credit card billing more accessible and more efficient. For example, a client would not have to worry about due dates, balance transfers, etc.

Cred Business Model
Cred Business Model

Biggest Challenges of Cred

The biggest challenge that Kunal and his associates face is hidden charges and overheads they had yet to account for before starting the venture.

One central area they faced was transaction fees. Transaction fees are non-refundable, which means that once a client makes a transaction, the company does not refund the amount back to him. Due to this reason, some clients are hesitant to use this model due to the hidden fees.

Well, this problem is here to stay for at least the next six months or so as Apple mulls over the introduction of the iPhone app that will force companies like hers to introduce transaction fees as standard.

While many other companies have already adopted this concept, Apple is the only company yet to do so.

Another challenge they face is their model’s inability to provide instant credit lines. Their service users need help to obtain a credit card number through this process.

With the impending release of the iPhone 8, this whole process might change.

How Cred Beating their Competitors?

Apple plans to introduce an Instant Credit Line feature in its next mobile phone. Even though no firm release has been made, their website says the feature is coming soon.

Kolkata-based POS provider Freshdesk has recently completed its acquisition of Paypal, one of the largest payment processors in India.

In addition, the company also signed a Memorandum of Understanding (MOU) with MasterCard and Visa, which would value the business between the two entities and would result in a valuation of over 2.2 billion valuations.

This clause implies that Freshdesk could charge an income tax for its services in India.

As Paypal withdraws more money from its customers, credit card payments in India may also grow steadily.

However, debit card payments from abroad will likely grow parallel to online payments in India. With a debit application like credit, one can quickly process all kinds of online payments in India from any part of the world.

As the online market is becoming competitive daily, it is easy for a crediting business model to compete with other players in the same industry.

A crediting system like credit is helpful because the application requires no upfront fees or investment. Once a user has made the initial deposit of a certain amount, they can use their credit score to receive payments from various sources.

Once the user receives their prices, they can redeem their crediting points.

The banks will verify the validity of the user’s bank account through SEBI. If the SEBI finds that the bank account holder is financially fit and legitimate, then the SEBI will give the bank a notice to send the payments.


A reply platform could be as successful as a traditional Paypal-revenue relationship. While both methods have advantages, repayment offers a few unique advantages, making the model even more popular among entrepreneurs.

Therefore, it is easier for people to spread the word about their business without being restricted by the rules and regulations set up by the brick and mortar establishments.

In addition, some rental startups also offer the option of accepting credit card payments from people across the country and abroad.


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