Case Study: How to make a business impact on CRED UPI services
A small change in the UI can have a very good business impact on the product.
Executive Summary
This case study aims to provide actionable insights and strategies for Cred UPI to become a leading choice for seamless and rewarding digital payments.
This case study investigates the user engagement and market position of Cred UPI, a Unified Payments Interface (UPI) service provided by Cred, a members-only app focused on rewarding credit card payments. Despite its innovative approach, Cred UPI currently captures only 1% of the UPI market, significantly trailing behind major competitors like PhonePe and Google Pay. This study identifies key areas for improvement and proposes strategies to enhance user engagement and market share for Cred UPI.
What is CRED Pay?
Indian fintech unicorn CRED has introduced a Unified Payments Interface (UPI) payment feature, ‘Scan & Pay’, on its app for its members.
The service, which will be limited to CRED members, will also allow users to make peer-to-peer (P2P) transactions from their bank accounts linked to the CRED app.
This can be carried out either by scanning a quick response (QR) code or by feeding in the beneficiary’s UPI identity.
In order to successfully implement the decision, Cred is looking into privacy, design and rewards.
The UPI payment experience also covers 2x rewards on partner merchants, flairs and skins, and dynamic messaging.
Furthermore, CRED added features such as CRED Protect to enable creation of alias UPI ID instead of using the default one including their phone number, by the users.
CRED also eliminates the need to raise any complaint ticket by the users in case of transaction failure, and the users’ money is returned to their bank account.
Overview & Problem Statement
Despite its innovative approach within a premium ecosystem, Cred UPI holds only 1% of the UPI market, significantly trailing PhonePe (47%) and Google Pay (35%). Users prefer competitors for accessibility, trust, and clear rewards. This case study addresses how to improve user accessibility for Cred UPI's "Scan & Pay" feature and increase its user base.
Research & Key Findings
A survey of 20 individuals revealed diverse UPI usage patterns and preferences:
Diverse Usage: 12 users utilize multiple apps (Paytm for small local payments, PhonePe/Google Pay for e-commerce, food, P2P).
Competitor Strengths:
Paytm: Easily accessible Scan QR, preferred for small payments.
Google Pay: Recommended payment option, good cashback, perceived safety.
PhonePe: Easy UPI ID entry, used for various transactions.
Trust Issues: Paytm's recent credibility issues led 5 users to switch to PhonePe; 3 users prioritize Google's brand for safety.
Identified Pain Points for Cred UPI:
Complex User Experience: Users find it challenging to navigate to UPI services; initial setup/activation can feel forced and unintrusive.
Limited Awareness: Many users are unaware of Cred's UPI features.
Technical Issues: Reports of bugs, failed transactions, and difficulties with refunds/customer support.
Inadequate Rewards: Rewards are perceived as "peanuts" or "negligible," and the "lightning-fast" display makes them hard to notice.
Strong Competition: Deeply entrenched user habits with other UPI apps.
"Members-Only" Barrier: Cred's 750+ credit score requirement limits its total addressable market for a mass-adoption product like UPI.
Competitor Analysis: "Scan & Pay" Experience
Key Takeaways: Competitors prioritize one-tap scanner access, reliability, and clear reward systems. Cred's "swipe left" and technical issues create friction.
Survey Before the Solution
I was interested in learning why users preferred popular UPI apps like Paytm, PhonePe, and Google Pay. In order to find out which UPI app people use and why they enjoy it, I decided to conduct a quick survey of 20 individuals (my friends and colleagues).
12 people were using all the 3 apps at the same time but for different occasions. Almost all the small payments in local shops were done through Paytm (tea, tobacco, and snacks) and all the other payments like Ecommerce purchase, Food Services, and Transferring money to friends and family was done through PhonePe and Google Pay.
Proposed UX Improvements & Design Opportunities
Based on research, the following improvements are crucial for Cred UPI's "Scan & Pay":
Enhanced Scanner Accessibility:
Dedicated Home Screen Button: Implement a prominent "Scan & Pay" button directly on the Cred app's home screen for one-tap access.
App Shortcuts: Explore quick access via long-pressing the app icon.
Streamlined Onboarding & Activation:
Opt-in Flow: Redesign UPI activation to be clearly opt-in, avoiding "forced" registration during other transactions.
Clear Value Proposition: Articulate unique benefits (e.g., privacy, exclusive rewards) during onboarding.
Improve Transaction Reliability & Feedback:
Robust Error Handling: Reduce transaction failures through technical infrastructure improvements.
Instant Refunds: Ensure the promise of immediate money return for failed transactions is consistently met, without user intervention.
Accessible Customer Support: Provide clear, in-app support channels for payment issues with prompt resolution.
Redesign Rewards Experience:
Visible & Understandable Rewards: Fix the "lightning-fast" display; clearly show and celebrate the reward received post-transaction.
Perceived Value: Re-evaluate rewards for higher actual value or better communication of their worth.
Dedicated Rewards Section: Create a prominent section showing accumulated UPI rewards and redemption options.
Seamless Ecosystem Integration (Non-Intrusive):
Contextual Prompts: Offer Cred UPI as a payment option when relevant (e.g., bill payments, Cred Store) rather than forcefully promoting it.
Highlight Unique Features: Emphasize the "alias UPI ID" for privacy as a key differentiator.
Strategies for Awareness & Adoption
To increase Cred UPI's user base and transaction volume, a multi-pronged strategy is needed:
Targeted Marketing Campaigns:
"Unlock More Rewards": Highlight exclusive Cred UPI rewards (e.g., 2x on partners, "100% cashback every hour") to existing members.
"The Smart Way to Pay": Position Cred UPI as a premium, private, and secure payment method for the "creditworthy" (leveraging alias UPI ID).
"Beyond Bill Payments": Educate existing Cred users on UPI's daily utility within the app.
In-App Promotion & UX-Driven Adoption:
Guided First Transaction: Offer a highly incentivized, guided walkthrough for the first UPI transaction.
Gamification: Introduce "UPI Streaks" or "Payment Challenges" to encourage consistent usage and reward loyalty.
Enhanced Reward Display: Ensure rewards are clearly seen and understood post-transaction.
Build Trust & Credibility:
Transparency: Provide real-time status updates and clear refund processes.
Security Reinforcement: Prominently display security features within the app.
Visible Customer Support: Ensure easily accessible and effective support for payment-related issues.
Success Metrics & Evaluation
The proposed strategies directly contribute to Cred UPI's defined success metrics:
A small change in the UI can have a very good business impact on the product.
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