PhonePe and HDFC Bank have announced the launch of a co-branded credit card, marking the digital payments and financial services company's entry into the co-branded card market.
The PhonePe HDFC Bank co-branded RuPay credit card is intended to meet the changing financial needs of Indian customers.It also provides benefits for UPI spending, particularly on the PhonePe platform.
Key Highlights
- PhonePe and HDFC Bank launch co-branded RuPay credit card with UPI-enabled spending and rewards, offering 10% on PhonePe, 5% on top online merchants, and 1% on UPI scan‑and‑pay.
- Ultimo card includes two domestic lounge access per quarter and fully digital onboarding via PhonePe app, simplifying access and management.
"We are excited to announce our first co-branded credit card in collaboration with HDFC Bank.This launch demonstrates our commitment to providing innovative financial solutions to our diverse user base. This card is designed to provide PhonePe customers with value on their regular purchases by offering 10% reward points in select categories such as bill payments, recharges, and travel bookings," said Sonika Chandra, Chief Business Officer, Consumer Payments at PhonePe.
Additionally, consumers can use this card seamlessly across millions of UPI merchants. We are confident that our strategic partnership with HDFC Bank, combined with the benefits that this card provides, will transform the credit card experience for millions of Indians," she said.
The strategic partnership between HDFC Bank and PhonePe also draws on their respective banking and fintech strengths to make credit cards more accessible and user-friendly.
The cards are available in two variants: 'Ultimo' and 'UNO', and they provide rewards on popular spending categories such as recharge, bill payments, travel, online shopping, groceries, and taxis.
The cards also integrate seamlessly with UPI, allowing users to pay for everyday purchases with credit cards while reaping the benefits of the cards' rewards through the extensive merchant network enabled by UPI QRs.
"As India's leading card issuer, we are constantly striving to create impactful, tailored offerings for our customers and broaden access to credit in meaningful ways. Our collaboration with PhonePe enables us to reach a segment of digitally native consumers, making credit cards more rewarding and widely usable, particularly through UPI, an interface that has become central to India's digital payments ecosystem," said Parag Rao, HDFC Bank's Country Head-Payments, Liability Products, Consumer Finance, and Marketing.
The 'Ultimo' variant provides customers with significant reward points, including 10% reward points on PhonePe app spends in categories such as bill payments, recharges, travel bookings via PhonePe, and purchases on Pincode, PhonePe's hyperlocal delivery app; and 5% reward points on spending with leading online merchants.
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Users will also receive 1% reward points on all UPI scan and pay transactions made with the card, as well as two domestic airport lounge accesses each quarter.
Eligible PhonePe users can apply for the co-branded credit card directly through the PhonePe Mobile App; the application process is completely digital, according to the company.
Once the card is issued by HDFC Bank, users can link it to PhonePe and pay merchants using UPI. The PhonePe app allows users to manage their cards and pay their monthly credit card bills.
According to the company, the card will be rolled out to eligible PhonePe users gradually.
