Delhi man says he got Re 1 cashback from Cred after paying credit card bill of Rs 87,000

In April, Cred received Reserve Bank of India's in-principle approval to be a payment aggregator (PA) which would help it manage and move customers' money to merchants. (Image credit: Unsplash)

A Cred user from Delhi has shared that he received a cashback of Re 1 after using the fintech company's app to pay his credit card bill of Rs 87,000. Gurjot Ahluwalia, a manager with Accenture who is passionate about equity and personal finance, said that henceforth, he would rather use the bank portal to pay his bills directly than use Cred.

"Made a credit card bill payment of 87,000 and received a maha cashback of Re 1 from Cred," Ahluwalia wrote on X. "Time to stop sharing data with Cred and pay directly from the bank portal."

Made a credit card bill payment of 87,000 and received a maha cashback of ₹1 from Cred.

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Time to stop sharing data with Cred and pay directly from bank portal.

— Gurjot Ahluwalia (@gurjota) May 13, 2024

Ahluwalia's post appeared to strike a chord with several other X users who also commented on the almost negligible rewards that Cred users now get for using the app.

"Did that over about 1.5 years ago, rewards were worthwhile only in the beginning then they reduced the cash burn," wrote Gurugram Man (@GurugramDeals). "Once, I asked a fintech friend, why people use Cred and what's the main benefits. He said Cred reminds you to pay bills on time, and cashback is negligible. I never signed up. Now, reading your story, I think I didn't miss out on anything extremely special," commented Michael Rupam Makhal (@mrmakhal).

Bengaluru-based Cred is the largest third-party app for credit card bill payments in the country. The Kunal Shah-led company has more than 15 million active customers and it is the fourth largest Unified Payments Interface (UPI) player with a 2.3 percent volume market share in the country's largest digital payments platform.

Last month, the company received Reserve Bank of India's in-principle approval to be a payment aggregator (PA) which would help it manage and move customers' money to merchants. This is not a final approval or license, which will be granted in around six to twelve months, but those who get in-principal approval can continue business unless told not to by RBI.