Over the last 16 transactions, most of the cred’s growth has come from UPI Transactions other than engaging top credit card customers.
By Crox Times Desk: Cred is in a spot with respect to its marketing strategy. The UPI transactions on the platform had dropped to a third and its share of the credit card bill payment market had shrunken a bit. An Indicator that its core business includes credit bill payments for the rich is struggling at a point in time.
The average value of UPI transactions on Cred dropped from 4,529 in April to INR 13,300 in January 2022, this is as per the report of National Payment Corporations of India, which owns the platform UPI.
Additionally, the total value of UPI transactions on cred enhanced by 46 percent, mostly due to the scan and pay facility which was introduced by the company last year.
The data reveals that the increasing percentage of growth UPI transactions on cred during the past six months were possibly not credit bill payments, but small merchants’ transactions carried out since it introduced the new scan and pay service.
Around 95 percent of credit card bill payments on Cred are made via UPI and that has remained or less the same over the past couple of years, as per the multiple sources within the company.