HDFC Bank and PhonePe have launched a co-branded credit card designed to link UPI payments with a credit card rewards system. The card is available in two variants, ‘Ultimo’ and ‘UNO’, and aims to provide benefits for transactions made through the PhonePe platform, according to the official announcement.
The ‘Ultimo’ variant carries a joining fee of ₹999. Cardholders can recover this amount in the form of PhonePe gift vouchers. A ₹499 voucher is given after the first UPI transaction through PhonePe. An additional ₹500 is provided as ten gift cards of ₹50 each after the next ten UPI transactions.
As per the announcement, the card’s rewards structure offers points for spending across various categories. Payments made through the PhonePe app earn 10% back in reward points. These include bill payments, recharges, travel bookings, and purchases on PhonePe’s hyperlocal delivery platform, Pincode.
Purchases from selected online merchants earn 5% back in reward points. These merchants include Flipkart, Amazon, Myntra, AJIO, Swiggy, Zomato, and Uber. For other UPI payments through the ‘Scan & Pay’ feature, users get 1% back in reward points. Each reward point is valued at ₹1 and can be used to offset the card’s outstanding balance.
Official statement say that the cardholders can also access domestic airport lounges twice every quarter after reaching a specified spending milestone.
Applications for the co-branded card can be made through the PhonePe app. Users can link the card to the app for UPI payments and manage settings and payments digitally.
This partnership seeks to combine HDFC Bank’s banking network with PhonePe’s digital payment platform to provide a credit solution tailored to UPI users.
