I thought it was just basic chapped pads (like lips on humans) or maybe a reaction to the cleaner when we mop, or even just the litter box not being 100 percent clean or something... but it turned out to be an actual condtion Feline Plasma Cell Pododermatitis. Poor kitten. I feel horrible. The vet told me to wait for week or two while I use Neosporin cream (not ointment) on his paws - rub it in really good to see if that helped, but it didn't. So took him in and now he is on antidbiotics.
I feel horrible I thank the vet for trying to save me a buck and try an OTC remedy, but that wasn't working. If your cats have cracked pads and they are indoor cats and the pads bleed or have a purple-ish tint around where it's cracked, take them to the vet asap!