[Exclusive] CRED takes on Jar with digital gold rewards and savings feature

CRED has begun testing a gold-savings feature that allows users to invest in digital gold, while offering select members 1% cashback in the asset on bill payments as part of the pilot. The move puts the fintech in direct competition with Jar, the Tiger Global-backed micro-savings app.

Screenshots circulating on social media show CRED crediting up to Rs 50 in 24-karat gold into an in-app wallet. The cashback is part of the pilot phase to test the savings feature, and micro-savings via cashback may not be included in the final offering, a source familiar with the developments told YourStory.

Users can purchase additional gold, which CRED markets as pure 24-karat with insured delivery and the option to convert holdings into coins. The feature creates a “gold wallet” for members, showing their accumulated holdings in grams and rupee value, along with recent transactions. Only a few users have been able to access the feature as of now.

The feature resembles Jar’s model, which encourages users to save small sums of money into gold through micro-investments and round-up features.

The strategic overlap is significant. Jar has built a large user base by pitching gold as a culturally familiar and low-friction savings tool, particularly among younger and first-time investors. Jar claims to have more than 15 million users and was last valued at $250 million. However, the micro-savings app focuses more on a mass-market play while CRED operates as a selective, “walled garden” app for affluent and highly creditworthy Indians.

Also Read

The rise of digital gold in rural India

With gold still viewed as a safe asset class in India, digital platforms are leveraging it to blend daily spending with disciplined saving. Accel- and General Catalyst-backed Uni Cards (specifically the Uni Gold X Credit Card) allows users to convert their credit card rewards into 24-karat digital gold instead of just receiving cashback or traditional reward points.

Gold has become an attractive asset for many as prices have soared from Rs 50,000 for 10 grams in 2022 to over Rs 1 lakh today. This has also accelerated digital gold adoption.

Over 15 million Indians have reportedly joined the digital gold buying spree this year, according to a report citing Gaurav Mathur, Founder of SafeGold—a digital platform to buy, sell, and receive vaulted gold in small ticket sizes. SafeGold also powers the backend operations for brands including Tanishq, Amazon Pay, PhonePe, and Tata Neu.

Digital gold lets users buy and own small amounts of 24-karat gold online, often starting from as little as Re 1. The gold is stored in secure, insured vaults by trusted providers, so buyers don’t need to worry about physical storage. Investors can track holdings through apps, sell instantly at market-linked prices, or request delivery in coins or bars.