India’s digital payment ecosystem just got a major upgrade. PhonePe HDFC Bank, has launched its first-ever co-branded credit card on the RuPay network—seamlessly integrating credit with UPI payments. This marks a significant move for the Walmart-backed fintech giant, as it enters the highly competitive credit card market.
The new credit card comes in two variants: Ultimo and UNO, designed to offer flexibility, high rewards, and smooth UPI-enabled transactions. Let’s break down why this launch is poised to change the way Indians use credit.
UPI Meets Credit Card: A First-of-its-Kind Innovation
The standout feature of the PhonePe HDFC Bank credit card is its UPI integration. For the first time, users can make UPI payments at merchant outlets using a credit card. This combines the convenience of UPI with the flexibility of credit—making it ideal for millions who prefer cashless daily transactions.
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Once issued by HDFC Bank, the card can be applied for and managed entirely within the PhonePe app. Users can link the card, make UPI payments via Scan & Pay, manage transactions, and even pay bills—all in one place.
Two Variants to Choose From: Ultimo & UNO
1. Ultimo – For Power Users
- 10% rewards on PhonePe HDFC app spends: bill payments, mobile recharges, travel bookings, and orders via Pincode.
- 5% rewards on top e-commerce platforms like Amazon and Flipkart.
- 1% rewards on all UPI Scan & Pay transactions using the card.
- 2 complimentary domestic lounge accesses per quarter (conditions apply).
- Fuel surcharge waiver of 1% on transactions between ₹400–₹5,000.
- Annual fee: ₹999 (waived on ₹2 lakh yearly spend).
2. UNO – For Everyday Spenders
- 2% rewards on PhonePe app spends (₹500 monthly cap).
- 1% rewards on UPI transactions and online merchant spends (₹500 monthly cap each).
- Basic reward structure for new users getting started with credit.
- Annual fee: ₹249 (waived on ₹1 lakh yearly spend).
Easy Sign-Up & Welcome Bonus
Customers can directly apply for the card within the PhonePe app. After issuance by HDFC Bank, the card is instantly available for digital transactions. As a welcome bonus:
- Ultimo users get ₹499 as a PhonePe gift code after their first UPI transaction, and the remaining ₹500 over 10 monthly transactions.
- UNO users receive half their fee back upfront and the rest in reward form on continued usage.
Why This Card Matters
1. Revolutionary UPI-Credit Integration
This is one of the first credit cards in India to allow UPI payments via credit card, transforming how users interact with digital payments. For regular UPI users, this means more flexibility and better reward potential.
2. High Reward Potential
The Ultimo card’s 10% reward on everyday utility spends is significantly higher than what most credit cards offer. Frequent PhonePe HDFC users stand to benefit the most, especially those using its Pincode hyperlocal delivery service.
3. Digital-First Experience
From application to usage and management, everything happens within the PhonePe app—making the user journey completely digital and effortless.
4. HDFC Bank’s Backing
With HDFC Bank being one of the largest credit card issuers in India, cardholders benefit from a trusted ecosystem, including features like zero-fraud liability, SmartPay bill payment, and customer support.
Ideal for Whom?
This credit card is perfect for:
- Regular PhonePe users who spend on bill payments, recharges, groceries, and travel.
- Frequent online shoppers on platforms like Flipkart and Amazon.
- Digital-first customers who prefer UPI and cashless transactions.
- Travelers looking for added perks like airport lounge access and fuel waivers.
Key Reward Comparison Table
| Spend Category | Ultimo Rewards | UNO Rewards |
|---|---|---|
| PhonePe App | 10% (₹1,000 cap/month) | 2% (₹500 cap/month) |
| Online Shopping | 5% (₹500 cap/month) | 1% (₹500 cap/month) |
| UPI Scan & Pay | 1% (₹500 cap/month) | 1% (₹500 cap/month) |
| Lounge Access | 8/year (2/quarter) | None |
Final Verdict
The PhonePe HDFC Bank RuPay credit card offers a new-age solution for the Indian consumer—merging UPI’s convenience with the power of credit. Whether you opt for Ultimo or UNO, both variants offer compelling benefits depending on your usage style.
For users who frequently use UPI and want to earn while they spend, this card checks all the boxes: high rewards, digital control, and nationwide acceptance. It’s not just another credit card—it’s the future of how India pays.