PhonePe Partners with HDFC Bank to Launch First Co-Branded RuPay Credit Card

30 Jun 2025 , 11:43 AM

In a significant move for its financial services arm, PhonePe has launched a co-branded credit card in partnership with HDFC Bank, marking its debut in the segment. The new offering, powered by RuPay, aims to make credit spending more accessible and rewarding for users who already rely on UPI for everyday transactions.

Customers using the card on PhonePe will be eligible for 10% rewards on common spends like bill payments, recharges, and travel bookings. The card can be used with UPI QR codes across merchants nationwide, combining the flexibility of UPI with the benefits of a credit card. PhonePe said this partnership is a step toward building integrated, user-friendly financial tools for its digital-first audience.

Two versions of the card are available UNO and Ultimo each offering reward points for categories like groceries, online shopping, and mobility services. The Ultimo card provides 5% rewards on selected ecommerce sites, 1% on UPI scan-and-pay, and two free domestic lounge accesses every quarter.

The process to apply is entirely digital, and eligible users can do so directly on the PhonePe app. Once issued by HDFC Bank, the card can be linked to UPI, enabling credit-based payments through PhonePe’s merchant network. Users will also be able to manage their card and pay monthly bills within the app itself.

Parag Rao from HDFC Bank said the partnership allows them to connect with a digitally native user base and extend credit in a way that fits today’s payment habits. The rollout is being done in phases and will initially be available to select PhonePe customers before expanding to a broader base.

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