Indian fintech platform Cred, backed by Tiger Global and Peak XV, has become the first non-bank entity to offer access to India’s central bank digital currency (CBDC), the e-rupee. The Reserve Bank of India (RBI) introduced the digital currency in a pilot programme in December 2022, initially restricting access to banks. However, in April 2024, the RBI expanded participation to include payment firms.
Cred’s launch of an e-rupee wallet will initially target select users, with YES Bank facilitating the issuance of digital rupee tokens. The move positions Cred as a frontrunner among fintech firms, ahead of competitors like GooglePay, Walmart-backed PhonePe, AmazonPay, and MobiKwik, which expressed interest in joining the digital currency pilot earlier.
Kunal Shah, Cred’s founder, highlighted the platform’s aim to provide a seamless user experience and promote adoption among India’s most creditworthy consumers. Despite a strong initial surge in e-rupee transactions, the digital currency has faced declining interest, mirroring global challenges in driving widespread use of CBDCs.
Cred’s initiative represents a significant step in integrating digital currencies into India’s fintech ecosystem, aiming to bolster adoption while addressing consumer usability concerns. This development aligns with the RBI’s broader goals of fostering a robust digital currency framework to complement the existing financial system.
