PhonePe partners with HDFC bank to launch co-branded credit card

PhonePe and HDFC Bank announced the launch of co-branded credit card, marking the digital payments and financial services company's foray into the co-branded card segment.

The PhonePe HDFC bank co-branded RuPay credit card is designed to meet the evolving financial needs of Indian consumers. It also offers benefits on UPI spending especially on the PhonePe platform.

"We are excited about our first co-branded credit card launch in partnership with HDFC Bank. This launch underscores our commitment to providing innovative financial solutions to our wide set of user base. This card is positioned to offer PhonePe customers value on their regular spends, by giving them 10 per cent reward points across select categories like bill payments, recharges, and travel bookings,” said Sonika Chandra, Chief Business Officer, Consumer Payments at PhonePe.

Additionally, consumers can use this card seamlessly across millions of UPI merchants. We are confident that our strategic partnership with HDFC Bank, coupled with the benefits that this card offers will redefine the credit card experience for millions of Indians," she added.

The strategic partnership between HDFC Bank and PhonePe also leverages their respective banking and fintech strengths to make credit cards accessible and user-friendly.

The cards are available in 'Ultimo' and 'UNO' variants, and these offer rewards on popular spending categories like recharge, bill payments, travel, online shopping, groceries, and cabs.

The cards also integrate seamlessly with UPI, allowing users to pay for their everyday spends via credit card while enjoying the rewards offered on the cards via the extensive merchant network enabled on UPI QRs.

"As India's leading card issuer, it is our constant endeavour to create impactful, tailored offerings for our customers, and expand access to credit in meaningful ways. Our partnership with PhonePe allows us to tap into a segment of digitally native consumers, making credit cards more rewarding and widely usable, especially via UPI -- an interface that has become central to India's digital payments ecosystem," said Parag Rao, Country Head – Payments, Liability Products, Consumer Finance and Marketing, HDFC Bank.

The 'Ultimo' variant offers customers significant reward points which includes 10 per cent reward points on PhonePe app spends across categories like bill payments, recharges, travel bookings via PhonePe and purchases on pincode, a hyperlocal delivery app by PhonePe; 5 per cent reward points on spending with leading online merchants.

Users will also get 1 per cent reward points on all UPI scan and pay transactions using the card; and two domestic airport lounge accesses per quarter.

Eligible PhonePe users can apply for the co-branded credit card directly on the PhonePe Mobile App, the application process is fully digital, the company said.

Once the card is issued by HDFC Bank, users can link the card on PhonePe and make payments to merchants via UPI. Users can also manage their card and pay their monthly credit card bill through the PhonePe app.

The card will be rolled out to eligible PhonePe users in a phased manner, the company said.