PhonePe HDFC Bank Ultimo Credit Card – Benefits, Fees & Eligibility

PhonePe HDFC Bank Ultimo Credit Card

Introduction

The PhonePe HDFC Bank Ultimo Credit Card is a co-branded offering from PhonePe and HDFC Bank, designed for individuals who frequently use PhonePe and make digital and UPI payments. Launched with a reasonable joining and annual fee of ₹999 + GST, this card aims to offset initial costs with welcome benefits equivalent to the joining fee. It provides substantial rewards, including 10% Reward Points on selected PhonePe transactions such as recharges, bill payments, and travel bookings, alongside 5% Reward Points on purchases from popular online platforms like Amazon, Flipkart, Myntra, Ajio, Swiggy, Zomato, and Uber. As a RuPay-powered credit card, it also features 1% Reward Points on Scan & Pay UPI spends, making it highly rewarding for daily transactions. Additional perks include complimentary domestic airport lounge access and an annual fee waiver for reaching a specified spending threshold, positioning it as an excellent choice for maximizing rewards on digital and UPI expenditures.

Welcome Benefits

• Cardholders will receive 50% of the Joining Fee (₹499) back as a PhonePe Gift Card upon completing their first RuPay Credit Card on UPI transaction.
• The remaining 50% of the Joining Fee will be distributed as ₹50 PhonePe Gift Cards for the next 10 RuPay Credit Card on UPI transactions.
• A minimum transaction of ₹100 is required to be eligible for these welcome benefits.
• Welcome Benefits are provided by PhonePe, and any queries should be directed to PhonePe Customer Care.
• The welcome benefits effectively offset the first year's charges, as they are equal to the joining fee.

Fees

• Joining Fee: ₹999 + applicable taxes (approximately ₹1,179 including GST).
• Renewal Fee: ₹999 + applicable taxes (approximately ₹1,179 including GST).
• Spend-Based Waiver: The renewal fee is waived upon spending ₹2,00,000 in the previous year.
  • Spends not considered for the waiver include: Cash advances, credit card fees or any charges, and all EMI spends (Easy EMI, Smart EMI, Dial an EMI).
• Rewards Redemption Fee: No charges for Reward Point redemption against statement balance.
• Foreign Currency Markup: 3.5%.
• Interest Rates: 3.75% monthly / 45% annually.
• Fuel Surcharge Waiver: 1% fuel surcharge waiver on fuel transactions.
  • Applicable on transactions between ₹400 and ₹5,000.
  • Maximum waiver of ₹250 per statement cycle.
• Cash Advance Charges: 2.5% or ₹500, whichever is higher.

Rewards

• Reward Point Earnings
  • 10% Reward Points on select PhonePe categories: Recharges, Utilities, Bill Payments, Travel (flights, buses, trains, hotels), and PhonePe PINCODE transactions made on PhonePe.
    • Capped at 1,000 Reward Points per calendar month.
  • 5% Reward Points on select online brands: Amazon, Flipkart, Myntra, Ajio, Swiggy, Zomato, Uber.
    • Capped at 500 Reward Points per calendar month.
  • 1% Reward Points on all Scan & Pay spends (RuPay CC on UPI spends).
    • Capped at 500 Reward Points per calendar month.
• Excluded Categories for Reward Points Accrual:
  • All EMI spends (Easy EMI, Smart EMI, Dial an EMI), Fuel transactions, Wallet load, Gift Card, Cash advances, Credit Card bill payment, Credit cards fees or any charges, Government transactions, Rental payments, Education fees transactions, Insurance and Investment, Jewellery purchase.
• Complimentary Lounge Access
  • 8 complimentary annual domestic lounge accesses, limited to 2 per quarter.
  • Conditional eligibility: Cardholders must spend ₹75,000 or more in a quarter to be eligible for lounge access in the subsequent quarter.
  • Spends excluded from this calculation: Cash advances, credit card fees or any charges, and all EMI spends.
• Other Benefits (N/A for specific rewards)
  • Movie & Dining: N/A for specific benefits, but eligible PhonePe movie/hotel bookings may earn 10% RPs.
  • Travel: N/A for specific travel benefits, but PhonePe travel bookings (flights, buses, trains, hotels) earn 10% RPs.
  • International Lounge Access: N/A.
  • Golf: N/A.
  • Insurance Benefits: N/A for specific benefits, and insurance payments do not earn Reward Points.

Rewards Redemption Guide

• CashBack Accrual: Reward Points are given in the form of cashback.
• Redemption Value for Cashback: 1 Reward Point = ₹1 when redeemed against the statement balance (on request only).
• Minimum for Cashback Redemption: A minimum balance of 500 Reward Points is required for redemption against the statement balance.
• Maximum Cashback: Maximum cashback of ₹7,500 per month.
• Other Redemption Options: Reward Points can also be used for redemption against Flight & Hotel bookings and the Rewards Catalogue at the SmartBuy Rewards Portal.
• Redemption Value for Other Options: 1 Reward Point = ₹0.30 when redeemed for product catalogue, Unified SmartBuy (flights/hotels), or Airmiles.
• Reward Points Validity: Unredeemed Reward Points will expire/lapse after 1 year from the date of accumulation. For example, points received in July 2025 will expire in July 2026.
• Redemption Charges: No charges for Reward Point redemption against the statement.

Card Eligibility Criteria

• Individuals who already hold an HDFC Bank Credit Card can still apply for the PhonePe HDFC Bank Ultimo Credit Card.
• However, applicants must not have submitted any other credit card application within the last 60 days to be eligible.

Card Review

The PhonePe HDFC Bank Ultimo Credit Card is an excellent everyday-use credit card, particularly for those who frequently utilize PhonePe for bill payments and digital transactions. Its generous 10% Reward Points on PhonePe spends, with a cap of 1,000 points per month, makes it highly beneficial for covering regular expenses like electricity, water, mobile, DTH recharges, and LPG bookings. This high reward rate is particularly valuable for middle-class individuals and avid PhonePe users.

Beyond PhonePe, the card extends its value by offering 5% Reward Points on purchases made via popular online platforms such as Swiggy, Zomato, Flipkart, Ajio, Uber, and Myntra, with a separate monthly cap of 500 Reward Points. The inclusion of 1% Reward Points on all Scan & Pay UPI spends further enhances its utility for daily payments, especially given its RuPay platform.

One of the standout features is the straightforward redemption process: all earned Reward Points can be redeemed as cashback against the card statement at a rate of 1 Reward Point = ₹1, with no redemption charges for cashback. This simplifies the rewards experience significantly.

However, a key consideration is the conditional domestic airport lounge access. While the card offers 8 complimentary annual visits (2 per quarter), it requires a substantial minimum spend of ₹75,000 or more each quarter to unlock this benefit, which might only be suitable for high spenders. Despite this, the card's overall value proposition, combining robust reward earnings on digital spends, a 1% fuel surcharge waiver, and the ease of cashback redemption, makes it a strong contender for maximizing benefits on digital and UPI transactions.

Best Suited For: Travel, Shopping, Utility Bills, UPI Overall Rating: 4.6/5

Pros

• Generous 10% Reward Points on bill payments and other select PhonePe categories, capped at 1,000 Reward Points per month.
• 5% Reward Points on a wide range of popular online merchants, capped at 500 Reward Points per month.
• 1% Reward Points on all Scan & Pay UPI spends, capped at 500 Reward Points per month.
• Redemption of Reward Points as cashback against the statement at a beneficial rate of 1 Reward Point = ₹1, with no redemption charges for cashback.
• Renewal fee waiver on annual spends of ₹2,00,000 provides good value.
• Complimentary domestic airport lounge access adds a premium travel perk.

Cons

• The complimentary airport lounge access is conditional on spending ₹75,000 or more each quarter, making it less accessible for moderate spenders.
• Reward points are not applicable on a broad list of categories including fuel, wallet loads, gift cards, EMI transactions, and insurance payments.
• Reward points have a validity of only one year.

Important Product Details

• The PhonePe HDFC Bank Ultimo Credit Card is an ideal credit card for making utility bill payments, spending via PhonePe, and UPI payments.
• Cardholders can earn 5% Reward Points on popular online platforms like Flipkart, Amazon, Ajio, Swiggy, Zomato, and Uber.
• Enjoy up to 8 complimentary domestic airport lounge accesses annually (2 per quarter), provided a minimum spend of ₹75,000 in the preceding quarter is met.
• Benefit from a 1% fuel surcharge waiver on transactions between ₹400 and ₹5,000, with a maximum waiver of ₹250 per statement cycle.
• Register your Credit Card with SmartPay, HDFC Bank's Utility Bill payment service, to ensure all utility bills are paid on time, conveniently, and easily.
• Experience zero cost liability: If you lose your card, report it immediately to the 24-hour call centre to have zero liability on any fraudulent transactions made after reporting the loss.
• Avail a free credit period of up to 50 days on your Credit Card.
• Reward Points are not earned on specific categories, including EMI transactions, fuel, wallet loads, gift cards, cash advances, credit card fees/charges, government transactions, rental payments, education fees, insurance, investments, and jewellery purchases.
• The card operates on the RuPay network, enabling UPI payments.

Other Details

• The card can only be applied for via the PhonePe app and cannot be applied for directly through HDFC Bank.
• The credit card is a co-branded product of PhonePe and HDFC Bank.
• The card offers up to 50 days of interest-free credit.
• It is a UPI RuPay-powered credit card.