PhonePe enters co-branded credit card space with HDFC Bank
What's the story
In a strategic move, PhonePe and HDFC Bank have launched the 'PhonePe HDFC Bank Co-branded Credit Card' on the RuPay network. The new offering marks PhonePe's entry into the co-branded credit card space and is aimed at digital-first consumers. The card comes in two variants—'Ultimo' and 'UNO,' both of which offer rewards across daily spending categories with the added convenience of Unified Payments Interface (UPI)-based transactions using credit.
Card benefits
'Ultimo' offers 10% reward points on PhonePe spends
The 'Ultimo' variant of the new credit card offers 10% reward points on spends made through the PhonePe app. This includes bill payments, recharges, travel bookings, and purchases on Pincode (PhonePe's hyperlocal delivery platform). The card also gives 5% reward points on spends with select online merchants and 1% reward points on UPI 'Scan & Pay' transactions. Plus, it provides two complimentary domestic airport lounge accesses per quarter.
Integration details
Credit card integrates directly with UPI
The new credit card integrates directly with UPI, allowing users to make payments using credit at millions of merchants accepting UPI QR codes. Cardholders can manage their card, track spends, and pay bills through the PhonePe app. Eligible users can apply for the card digitally within the PhonePe app. HDFC Bank will issue the card and enable UPI linkage upon approval in a phased rollout.
Strategic collaboration
PhonePe has over 61 crore registered users
The launch of this new credit card is a strategic partnership between HDFC Bank and PhonePe. It combines the former's credit issuance capabilities with the latter's digital reach. The main objective of this collaboration is to widen credit card access among digital-savvy users and promote UPI-based credit usage. As of April 2025, PhonePe has over 61 crore registered users and a merchant acceptance network of over four crore outlets.