PhonePe Enters Co-Branded Credit Card Space with Focus on Everyday Rewards

New Delhi, Jan 13 : PhonePe made its entry into the co-branded credit card segment in June last year with the launch of its partnership card, responding to a clear shift in consumer preferences. Today’s credit card users are increasingly prioritising consistent value from everyday spending over occasional rewards tied to high-value purchases. The PhonePe HDFC Ultimo Credit Card has been designed with this evolving mindset at its core.

At the heart of the PhonePe HDFC Ultimo card is a simple and practical rewards philosophy. Instead of complicated milestones or category-based juggling, the card focuses on routine expenses that form a major part of household spending. Recharges, utility bills, DTH subscriptions, broadband payments and similar essentials are central to its benefits structure, ensuring cardholders earn rewards on transactions they already make every month.

One of the standout features of the card is the 10 per cent cashback offered on essential categories transacted through PhonePe. This includes mobile and DTH recharges, electricity and water bills, and other recurring payments. With these expenses being unavoidable for most households, the cashback effectively reduces monthly costs while encouraging digital payments.

The card also brings added value to local, offline spending through its 1 per cent cashback on all “Scan n Pay” transactions. From neighbourhood kirana stores to local vendors and small eateries, every QR code payment contributes to the cashback pool. With UPI-based payments deeply embedded in daily life across India, this feature ensures that even small, frequent transactions are rewarded, making local shopping more beneficial.

In addition to everyday essentials, the PhonePe HDFC Ultimo Credit Card caters to online shoppers by offering 5 per cent cashback on select e-commerce brands across categories such as fashion, electronics and lifestyle products. These benefits are complemented by complimentary domestic airport lounge access, adding a layer of travel comfort and premium experience without shifting focus away from daily utility.

The growing adoption of the card is largely being driven by its straightforward approach. Users are not required to meet high spending thresholds or track complex reward conditions. Instead, they earn cashbacks organically through regular expenses, local purchases and online shopping.

Positioned as a practical and user-friendly option in the co-branded credit card space, the PhonePe HDFC Ultimo reflects a broader industry move toward simpler, more accessible rewards. For consumers comparing different credit card offerings, it represents a model that aligns closely with real spending habits and everyday financial needs.

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