PhonePe has tie-up with HDFC Bank brings two RuPay credit cards that work on Rupay network: PhonePe Ultimo and PhonePe Uno. These Credit Cards are designed to reward users on UPI transactions, online shopping, and more. In this article, we’ll review both cards based on features, fees, rewards, welcome benefits, and real-life examples, so you can choose the one that fits your lifestyle best.
Overview – PhonePe Credit Cards at a Glance
| Feature | PhonePe Ultimo | PhonePe Uno |
|---|---|---|
| Joining Fee | ₹999 | ₹499 |
| Annual Fee | ₹999 | ₹499 |
| Welcome Benefit | ₹999 cashback (₹499 + ₹500) | ₹499 cashback (₹249 + ₹250) |
| Reward Rate (PhonePe spends) | 10% (Capped at 1000 RP/month) | 2% (Capped at 500 RP/month) |
| Online Shopping (e.g. Amazon) | 5% (Capped at 500 RP/month) | 1% (Capped at 500 RP/month) |
| Scan & Pay (UPI via Card) | 1% (Capped at 500 RP/month) | 1% (Capped at 500 RP/month) |
| Lounge Access | 8/Year (Spend ₹75,000/quarter) | None |
| Fuel Surcharge Waiver | 1% (₹250 cap/month) | 1% (₹250 cap/month) |
| Redemption | 1 RP = ₹1 (cashback) | 1 RP = ₹1 (cashback) |
PhonePe HDFC Ultimo Credit Card
Key Features
- 10% Rewards (Capped at 1000 RP/month) on PhonePe categories: Recharges, Bill Payments, Flights, Hotels.
- 5% Rewards (Capped at 500 RP/month) on Flipkart, Amazon, Zomato, Swiggy, Uber, Myntra, AJIO.
- 1% Rewards (Capped at 500 RP/month) on UPI Scan & Pay.
- 8 Lounge Accesses per year (on spending ₹75,000 per quarter).
- ₹999 Welcome Benefits: ₹499 gift card + ₹500 via ₹50 cashback for each UPI payments upto 10 UPI payments.
- ₹999 charged as joining fees and renewal fees.
PhonePe HDFC Uno Credit Card
Key Features
- 2% Rewards on PhonePe categories (Recharge, Flights, Hotels).
- 1% Rewards on Flipkart, Amazon, Zomato, etc.
- 1% Rewards on UPI Scan & Pay.
- ₹499 Welcome Benefits: ₹249 gift card + ₹250 via ₹25 cashback for each UPI payments upto 10 UPI payments.
- All rewards capped at 500 RP/month.
- No lounge access despite annual fee of ₹499.
MCC Categories Not Eligible for Reward Points
Both cards do not give reward points on the following Merchant Category Codes (MCCs):
- EMI transactions
- Wallet loads
- Fuel (only surcharge is waived)
- Cash advances
- Credit card bill payments
- Government services
- Rent payments
- Education fees
- Insurance payments
- Investments
- Jewelry purchases
- Gift card purchases
So, if you spend on these, you won’t earn any rewards.
Real-World Cashback Example
Imagine you spend ₹40,000 in one month:
| Spend Split | Amount | Ultimo Cashback | Uno Cashback |
|---|---|---|---|
| PhonePe in-app | ₹10,000 | ₹1,000 (10 %) | ₹200 (2 %) |
| Partner e-commerce | ₹10,000 | ₹500 (5 %) | ₹100 (1 %) |
| QR Scan & Pay | ₹5,000 | ₹50 (1 %) | ₹50 (1 %) |
| Fuel, Wallet, EMI* | ₹15,000 | ₹0 | ₹0 |
| Total Rewards | ₹1,550 RP | ₹350 RP |
*Fuel still attracts the 1 % surcharge waiver but earns no points.
Ultimo delivers nearly 4.5 × the value of Uno on identical spending.
Verdict
Phonepe Ultimo is a good card that gives 10 % on core PhonePe categories, 5 % on e-commerce brands. However, the requirement to spend ₹75,000 per quarter to unlock lounge access is quite high—especially considering the card already charges a ₹999 annual fee. If you won’t meet that spend target every quarter, the lounge benefit will be inaccessible to you.
PhonePe Uno, on the other hand, offers only 2% cashback on PhonePe spends and 1% elsewhere, with a cap of just ₹500 in rewards per month. ₹499 annual fees do not justify the cost as 2% cashback is way to less . In fact, there are better free credit cards in the Indian market (like Amazon Pay ICICI or Flipkart Axis) that offer higher returns with no annual charges.
So Phonepe Ultimo is a good card for everyday spends while Uno feels underwhelming when compared to other options in the market.
