Payments market leader PhonePe has issued two new co-branded credit cards with SBI Card, less than a month after partnering with HDFC Bank, India’s largest credit card issuer.
Walmart-owned PhonePe is looking to expand its revenue pool through credit products including cards, ahead of the upcoming initial public offering. The Bengaluru-based company holds a 46 percent market share in digital payments platform Unified Payments Interface (UPI).
Unlike the HDFC alliance, the SBI Card tie up will have a Rupay and Visa network versions across both variants - PhonePe SBI Card Purple and the PhonePe SBI Card Select Black. Rupay credit cards can be linked to UPI for payments, the core business of PhonePe. The domestic Rupay credit card network is run by the National Payments Corporation of India (NPCI), which also runs UPI.
“The partnership with PhonePe is a significant step towards further popularising credit card usage, by combining SBI Card’s deep domain expertise and PhonePe’s extensive digital network,” said Salila Pande, managing director and CEO of SBI Card.
The Visa card can be tokenised on PhonePe app and can be used for tap and pay as well as for other digital payments without carrying the physical card.
“We are further expanding our offerings beyond digital payments into the realm of formal credit. We have invested significant effort in creating a smooth user experience by embedding the card functionality directly into the PhonePe app, ensuring it is easy to apply for, manage, and utilise while delivering value,” said Sameer Nigam, cofounder and CEO of PhonePe.
The premium Black variant provides up to 10 percent reward points on PhonePe and Pincode app spends, along with up to 5 percent reward points on all other online merchant spends. The Purple variant offers 3 percent reward points on PhonePe and Pincode app spends, as well as 2 percent reward points on all other online transactions.
Similar to most other co-branded cards, both SBI cards offer 1 percent reward points on all other eligible spends, which can be redeemed to settle outstanding credit card bills or avail e-gift vouchers from SBI Card redemption catalogue.
On July 15, PhonePe had announced the appointment of former Meta India public policy head Shivnath Thukral as vice president for public policy and government affairs, at a time when payment bodies are trying to convince the government on applying Merchant Discount Rate on UPI transactions.
In June, the fintech firm had appointed former Standard Chartered India and South Asia CEO Zarin Daruwala, a veteran with over three decades of banking experience, to the board.
PhonePe redomiciled from Singapore to India in December 2022 with the intention to list in India. The company was valued at around $12 billion in its last private fundraising.
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