PhonePe, HDFC Bank launch co-branded RuPay credit card with UPI integration

PhonePe and HDFC Bank have announced the launch of a co-branded credit card, marking the Walmart-backed firm’s entry into the growing card segment.

The PhonePe HDFC Bank Co-branded Credit Card has been issued on the RuPay network and is UPI-enabled, which will allow users to make payments via the popular real-time payments system while earning rewards on everyday spends.

The new card will be available in two variants, ‘Ultimo’ and ‘UNO’ and be rolled out to eligible users in phases.

Customers can apply directly through the PhonePe app. Once issued by HDFC Bank, the card can be linked to the PhonePe app and used to make payments to merchants via UPI. Users can also manage the card and pay bills within the app, a release said.

“This card is positioned to offer PhonePe customers value on their regular spends, by giving them 10 percent reward points across select categories like bill payments, recharges, and travel bookings,” said Sonika Chandra, Chief Business Officer, Consumer Payments at PhonePe.

The ‘Ultimo’ variant offers 10 percent reward points on spends made within the app, including bill payments, recharges, travel bookings, and purchases on Pincode, PhonePe’s hyperlocal delivery platform, the released said.

It also offers 5 percent reward points on transactions with leading online merchants and 1 percent on all UPI scan & pay transactions using the card. Cardholders will get two domestic airport lounge accesses per quarter.

The launch aligns with the companies’ efforts to expand access to credit and make it more rewarding and user-friendly. The partnership also aims to tap into the increasing adoption of UPI for everyday transactions, offering users the combined benefits of credit and digital convenience, the release added.