Fintech unicorn CRED has forayed into buy now pay later (BNPL) space with the launch of CRED flash, which will offer a customised spend limit to its members that can be repaid in 30 days.
CRED flash can be used for payments on CRED or to pay CRED’s 500 merchant partners through CRED Pay. Members will get a 30-day repayment period on CRED flash spend. CRED’s buy now pay later offering is powered by Parfait Finance and Investments Pvt Limited, which is an RBI-registered NBFC.
Talking about other benefits of CRED flash, the company said: “CRED flash aims to removes the friction of dealing with OTPs, switching to external apps, or high failure rates during checkout. It will also enable members to checkout smoothly without having to wait for OTPs, manually filling out account forms, or typing shipping and billing information.”
This development comes at a time when BNPL apps have faced multiple crackdowns from the RBI, leading to disruption of service for players such as Uni, Slice, and Lazypay, among others. Earlier this month, when asked about the regulatory ambiguity in fintech space, CRED CEO Kunal Shah told businessline: “I have been in fintech for over 12-13 years now including the years I spent building Freecharge. The regulations in fintech have always been around. In general building products takes a lot of care about the consumers and not taking shortcuts is always the right thing to do.”
Along with CRED Flash, the fintech major has also announced the launch of ‘Tap to Pay’ feature, which is an NFC-enabled Android device enabling users to make credit card payments from their phone using ‘Tap to Pay’. CRED Members can pay with credit cards saved on CRED in two steps: unlock their phone and tap the merchant’s PoS machine. With CRED Tap to Pay, members can also access account information, view transaction history, and avail rewards such as CRED coins and offers.
“Tap to Pay uses secure card tokenization technology to store card tokens on the device. When members tap their phone on a card reader, this token data is transferred via NFC to the reader to initiate a payment. This way, the card data is never shared with the merchant - making transactions safe and secure,” the company added.
CRED recorded a net loss of ₹1,279 crore in FY22 even though its revenue jumped by almost 340 per cent from ₹95 crore in FY21 to ₹422 crore in FY22. The company’s losses have more than doubled from ₹524 crore in FY21.