PhonePe HDFC Bank Ultimo Credit Card — A Deep Dive into India’s UPI-Integrated Credit Card for Digital Spenders
- Anusha Madda
- 24 hours ago
- 6 min read
With mobile payments and UPI becoming the new normal for many Indians, co-branded credit cards are changing at a fast pace to keep up with the digital-first lifestyle. The recently introduced one is the PhonePe x HDFC Bank Ultimo variant, which is a combination of UPI convenience and credit-card reward schemes. This blog explains the card thoroughly, including its main features and costs, applicability, advantages, as well as disadvantages of the card, and the best way to maximize the benefits of this card.
Introduction:
The collaboration between PhonePe and HDFC Bank is a prominent point of fintech and banking. Ultimo credit card is based on the national RuPay platform, and among the features that can be singled out is the option to use the credit card via UPI (i.e., paying with the help of UPI QR codes) - a feature that gains in importance as UPI becomes more widespread in India. This card fits well in the market of users who are already doing much of their spending through UPI apps (particularly PhonePe) and seek rewards smacking of a credit card. The long-tail keyword to consider in this case is the following: PhonePe HDFC Bank Ultimo Credit Card rewards of UPI payments - this is the niche that the card is aimed at.
Key Features & Benefits of the Ultimo Credit Card
Welcome Benefit
Credit cardholders will get a gift card worth INR 1,500.
Milestone Benefits
Get a travel gift voucher worth INR 5,000 on spending INR 5 Lakhs in a year.
Cashback Rate
Reward System: Value of 1 reward point = INR 1.
10 Reward points on Phonpe spends and Pincode (hyperlocal delivery app) spends, such as Recharges, Bill Payments, Insurance, Flights, Hotels, Pincode (a hyperlocal delivery app) & more.
PhonePe Pincode Cashback Rate: 10%.
5 reward points on spend of INR 100 on Swiggy, Zomato, Uber, Myntra, Nykaa, BookMyShow, MakeMyTrip, Blinkit, District, Zepto, Rapido + 1000 brands.
Special Cashback Rate: 5%.
1 reward point on all other spends.
General Cashback Rate: 1%.
Complimentary Domestic Lounge Access
The HDFC PhonePe Ultimo Credit Card offers two complimentary domestic airport lounge visits per quarter, provided a minimum spending of Rs 75,000 or more is achieved each quarter.
The following categories are excluded from the spend calculation for free airport lounge access.
Cash Advances
Credit Card Fees or Any Charges
All EMI Spends
To know more about this card and the unbiased AI score of the card, click here
Fees, Charges & Important Conditions
Joining Fee/Renewal: ₹999 + GST (~₹1,179) each year. Renewal fee is waived if you spend ₹2,00,000 in the previous year.
Effective First-Year Cost: Because the welcome benefit gives you back approx ₹999 via gift cards, the first year’s net cost becomes effectively zero if you do the initial UPI transactions.
Reward Cap Limits: As noted above, the 10% category is capped at 1,000 RPs/month; 5% category is capped at 500 RPs/month; 1% category is capped at 500 RPs/month.
Foreign Currency Mark-up: ~3.5% for foreign currency transactions (as per review).
Minimum Spend for Lounge Access: ₹75,000 per quarter spend trigger is required for complimentary lounge visits (per some reviews).
Eligibility Criteria
Age: You must be minimum 21 and 70 years old.
Income: You must have a stable source of income.Credit score: A good credit score is generally required.
Pros and Cons: A Balanced View
Pros
Maximum reward rate of 10% in special categories of Indian cards (uncommon with Indian cards).
Rewards 5% on select online merchants, 1percent on UPI scan and pay - favorable to the digital/online intensive users.
First-year cost-effectiveness is almost zero (with a welcome benefit).
The UPI payments made with a Rupay credit card provide convenience and synergy in rewards.
Free domestic airport lounge (when the spending threshold is reached)
Cons
The reward points are limited by monthly limits on the maximum amount spent (i.e., after 1,000 Reward Points spent in the 10% category or 500 Reward Points spent in 5% category, no additional rewards are earned).
Access to the lounges is of high spend (e.g., Rs 75K per quarter), which might be impractical among average spenders.
Certain areas of large spend are not reward eligible (fuel, wallet loads, gift cards, investment, etc) and hence, although you pay, you might not receive a reward point.
Net benefit may be lessened because of the annual fee (Rs999 + GST) and foreign currency mark-up (3.5%) for some users.
Reward points expire after one year (as per review), and the redemption value of catalog/airmiles to your statement credit is reduced (Rs0.30 per RewardPoint) unless you redeem them.
Why does it work to be a digital spending card?
The UPI/PhonePe transactions for which the card rewards are those that many of the traditional cards do not offer (utility bills). Here, the PhoneyPe 10 percent reward on phone payments (bills/recharges) is also worth mentioning, as most cards do not cover utility bills.
RuPay network + UPI integration implies the credit card mechanics and payments based on QR - convenient in the current payment habits.
How to Maximize the Reward Potential — A Strategy Guide
Here are actionable tips — turning the long-tail keyword “how to maximize PhonePe HDFC Bank Ultimo Credit Card rewards” into real steps.
Link the card via UPI early: Since a big chunk of reward opportunities comes from UPI/PhonePe usage, ensure you link the RuPay credit card in the PhonePe app (or other UPI app) and start making transactions that qualify (minimum ₹100 per transaction for welcome benefits).
Target the 10% category: Every month, try to spend ~₹10,000 in the PhonePe category (recharges, bills, travel) to hit the cap of 1,000 reward points. Once you hit the cap, incremental spends may yield less value, so you can switch to the next tier.
Target the 5% online brands: Spend ~₹10,000 monthly on Amazon/Flipkart/Myntra/Ajio/Uber/Swiggy, etc. to hit the cap of 500 reward points.
Use Scan & Pay for routine UPI transactions: Even if you don’t hit full advantage, making UPI scan payments (e.g., small merchant QR payments, grocery, offline stores) helps you accrue 1% reward points up to 500 RPs/month (i.e., ~₹50,000 spend).
Meet lounge access spend threshold: If lounge access matters, plan quarterly spends of ~₹75,000 (or whichever is required) in the quarter to unlock 2 domestic visits.
Redeem RPs smartly: Since 1 RP = ₹1 when redeemed as a statement credit, make sure to use that method (rather than low-value catalog redemption, where 1 RP = ~₹0.30) to get maximum value.
Avoid non-reward spends: Be aware of categories where no reward points apply — e.g., fuel (though surcharge waiver applies), wallet loads, EMIs, investments, etc. Don’t expect high returns in those.
Watch the renewal fee condition: For an annual fee waiver (₹999 + GST), you’ll need an annual spend of ~₹2 lakh. If you won’t hit that, calculate whether the net cost justifies your usage.
To compare and know more about other HDFC cards, click here
Final Thoughts PhonePe HDFC Bank Ultimo Credit Card
The PhonePe HDFC Bank Ultimo Credit Card is the new generation of credit card designed around UPI-interoperable, mobile-first payment behaviors. This is an enticing product to the Indian consumer who uses UPI regularly, shops online, makes payments through applications, and wants to receive a reward on that action (but not on her or his traditional POS spend). As with any credit card, though, know your money, read the small print, know what is excluded, and ensure that perks fit your lifestyle instead of thinking that the card is going to transform your behavior.
Frequently Asked Questions (FAQ)
Am I eligible to apply Ultimo card when I already have an HDFC Bank credit card?
Yes, you are still welcome to apply, but you must verify the criteria of eligibility criteria of HDFC.
Will my purchases of fuel earn me any reward points?
No, but you will receive the 1 percent fuel surcharge waiver on any transaction in the range of Rs400 to Rs5 (max waiver Rs250 per statement cycle), but you will not receive reward points on fuel transactions under the reward program of this card.
What is the value, and how do I redeem reward points?
The reward points can be redeemed as a statement credit (1 RP = Rs1), which is the most valuable. When you redeem through HDFC SmartBuy/airmiles/product catalog, it comes to a value of approximately. Rs0.30 per RP. Ensure that you utilize the statement credit route to the best of your ability.
Is the joining fee justifiable?
First year: Yes - with the welcome benefit, you basically recoup the Rs999 fee (through PhonePe gift cards) in case you transact the necessary UPI transactions. Starting the second year, the fee will be waived provided you spent Rs2 lakh last year; otherwise renewal fee will be paid. And therefore the excuse is on your expenditure.
Whether the card accept UPI payments through other applications or just through PhonePe?
The card is also combined with UPI (on RuPay network), thus scanning and paying UPI payments through the RuPay credit card will be considered under the 1% reward category. In the case of the 10% and 5% segments, the spends must be through eligible merchants/apps (e.g., PhonePe/applied categories).
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