More than 4 out of 10 users earn dividends, says Cred Money report

At a median level, users earn dividends about ten times annually. Banking activity includes 116 P2P banking transactions against 318 outgoing payments, Cred Money data shows

More than four out of 10 users earn dividends on average with median customers handling over 434 peer-to-peer (P2P) banking transactions annually, reflecting a preference for digital financial management tools, data from fintech platform Cred Money shows. 

 

At a median level, users earn dividends about 10 times annually. Banking activity includes 116 P2P banking transactions against 318 outgoing payments, Cred Money data shows. 

 

Cred Money was launched in July last year. The platform enables users to have a unified view of all their bank account balances, reminders for recurring payments beyond credit card transactions, and a tool to analyse spends. On the platform, about 71 per cent users are active investors who invest a median of 28 times every year. A median user handles about 27 bills annually. Users have around 33 shopping debits, 16 health and wellness debits, 38 food and drink debits, and 25 transportation debits a year from their bank accounts, the report added. 

 

The platform’s personal finance management product aggregated and anonymised data based on transactions of over one million users. 

 

It is based on the Account Aggregator (AA) framework. 

 

“This high velocity of transactions from bank accounts is accelerated by the adoption of digital payment systems like UPI. Affluent Indians are also among the strongest adopters of multiple payment methods, as indicated by the high volume and value of UPI transactions made by credit card users,” the company said in a release. 

 

The rise in frequency of transactions is also reflected in a surge in transactions on India’s real-time payments system Unified Payments Interface (UPI). 

 

UPI payments saw an 8 per cent month-on-month increase in volume to 16.73 billion in December, the highest volume for the digital system since it became operational in April 2016. The value also increased by 8 per cent to Rs 23.25 trillion, up from Rs 21.55 trillion in November, data from the National Payments Corporation of India (NPCI) shows.