In a significant move to reshape digital payments in India, HDFC Bank and PhonePe have introduced a co-branded credit card that merges UPI convenience with credit card benefits. Designed to meet the evolving financial habits of Indian users, this card—available in Ultimo and UNO variants—offers rewards on UPI transactions, especially within the PhonePe ecosystem.
Bridging Credit and UPI: The ‘Ultimo’ Variant in Focus
While both variants provide UPI-linked features, the premium Ultimo card stands out with a comprehensive reward system and exclusive lifestyle benefits. It allows users to make UPI ‘Scan & Pay’ payments at merchant outlets using credit, while also earning reward points.
Joining Fee and Welcome Offers
The Ultimo card comes with a ₹999 joining fee, but users can recover this cost through a welcome benefit structure:
- ₹499 PhonePe Gift Card after the first UPI transaction on the PhonePe app
- ₹500 cashback (in the form of ten ₹50 gift cards) after completing 10 additional UPI transactions
This effectively nullifies the first-year fee, making it an attractive proposition for frequent UPI users.
Reward Structure: Earn While You Spend
The Ultimo card offers up to 10% back in reward points, with each point valued at ₹1 and redeemable as a statement credit. The rewards are tiered based on usage:
Tier 1 – 10% Rewards on PhonePe App Transactions
Earn 10% reward points on essential spending categories via the PhonePe app, including:
- Electricity, gas, water bills
- Mobile and DTH recharges
- Travel bookings (flights, hotels)
- Purchases on Pincode, PhonePe’s hyperlocal commerce app
Tier 2 – 5% Rewards on Top Online Brands
Get 5% back on spends made on:
- Flipkart, Amazon, Myntra, AJIO
- Swiggy, Zomato, Uber
Tier 3 – 1% Rewards on General UPI Spending
Earn 1% on all other UPI ‘Scan & Pay’ transactions using the PhonePe HDFC Bank Credit Card.
Additional Benefits
- Domestic Lounge Access: Two complimentary airport lounge visits per quarter, subject to achieving predefined spending milestones.
- Integrated App Experience: Users can apply for, activate, and manage the credit card entirely via the PhonePe app—including payments, settings, and reward redemption.
Redemption Made Simple
Reward points can be redeemed as a direct cash credit against the card’s outstanding balance, offering users maximum flexibility and value. This is managed seamlessly within the PhonePe app.
The PhonePe HDFC Bank Credit Card is a strategic move to redefine how Indians engage with digital finance. By merging UPI’s mass appeal with credit card perks, HDFC Bank and PhonePe are setting a new benchmark for consumer-friendly financial products. With attractive rewards, simplified management, and UPI compatibility, the Ultimo variant is poised to become a preferred choice for digital-first users.
