Most of us have to make monthly grocery purchases and utility bill payments. What if we get a sweet 10% value back on these transactions every month? The PhonePe HDFC Bank Ultimo Credit Card provides 10% reward points on select PhonePe categories like utility bill payments, Pincode, etc. It also provides 5% reward points on select online brands like Amazon, Myntra, Swiggy, etc., 1% reward points on Scan & Pay UPI transactions, complimentary airport lounge access, and a lot more. The reward points can be redeemed as cashback (1 reward point = Rs. 1) in the form of a statement credit. Let us look at the features and benefits of this credit card and whether you should take it.
Overview Table
| Feature | Details |
| Card type | Rewards credit card |
| Reward range | 1% to 10% cashback |
| Joining fee | Rs. 999 + Taxes |
| Welcome bonus | One Rs. 499 PhonePe Gift Card, andTen Rs. 50 PhonePe Gift Cards (total Rs. 500) |
| Renewal fee | Rs. 999 + Taxes |
| Renewal benefit | NA |
| Best for | Select category transactions on PhonePe, online shopping on select brands, and Scan & Pay UPI transactions |
| USP | 10% cashback on select PhonePe categories, complimentary airport lounge access, multiple options for reward points redemption, annual fee reversal on spending Rs. 2 lakhs, etc. |
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Fees & Benefits
The joining fee for the PhonePe HDFC Bank Ultimo Credit Card is Rs. 999 + Taxes.
The cardholder gets welcome benefits of Rs. 999 PhonePe Gift Cards in 2 parts as follows:
- One PhonePe Gift Card of Rs. 499 on the first RuPay credit card on UPI transaction on the PhonePe App.
- Ten PhonePe Gift cards of Rs. 50 each (total Rs. 500) spread over the next 10 RuPay credit card on UPI transactions on the PhonePe App.
The total balance from the above gift cards can be accumulated and redeemed at eligible merchants on the PhonePe App. The minimum transaction amount must be Rs. 100 to be eligible for welcome benefits.
The annual renewal fee for the card is Rs. 999 + Taxes.
The annual renewal fee is waived on spending Rs. 2 lakhs in the previous year.
Rewards Structure
The PhonePe HDFC Bank Ultimo Credit Card is power-packed with rewards as follows.
| Category | Reward rate | Monthly capping |
| Select PhonePe categories (recharges and bills), travel & stays (flights, bus, trains, and hotels), and Pincode (applicable for spends through RuPay credit card on UPI) | 10% | 1,000 reward points per calendar month |
| Select online platforms: Amazon, Flipkart, Myntra, Ajio, Uber, Swiggy, and Zomato | 5% | 500 reward points per calendar month |
| Scan and pay spends (RuPay credit card on UPI spends) | 1% | 500 reward points per calendar month |
The following categories/transactions will not earn any reward points:
- EMI transactions
- Fuel transactions
- Wallet loads
- Gift card purchases
- Credit card bill payment
- Government transactions
- Rental payments
- Education fees
- Insurance premiums
- Investments
- Jewellery purchases
Reward redemption
The reward points earned on the PhonePe HDFC Bank Ultimo Credit Card can be redeemed in the following ways.
- Cashback
The reward points can be redeemed as cashback against the outstanding credit card balance. The value of 1 reward point = Rs. 1 cashback. You must request the redemption of reward points as cashback. A minimum of 500 reward points balance is required for redemption as cashback against the statement balance.
A maximum cashback of Rs. 7,500 can be redeemed per month. The reward points have a validity of 1 year. The reward points will expire/lapse, if not redeemed within a year. There is no redemption fee when reward points are redeemed as cashback.
- Redemption on HDFC SmartBuy
The reward points can be redeemed on HDFC SmartBuy for booking flights and hotels. They can be transferred to airline and hotel loyalty programs. The reward points can be redeemed against the product catalogue. The value of 1 reward point is Rs. 0.30.
Additional features
The card offers the following additional features.
- Fuel surcharge waiver
The card provides a 1% surcharge waiver on fuel transactions. The waiver applies to transactions between Rs. 400 and Rs. 5,000. The maximum waiver that can be availed in a statement cycle is Rs. 250.
- Airport lounge access
The card provides 8 (2 per calendar quarter) complimentary domestic airport lounge access annually. The cardholder has to spend Rs. 75,000 in the previous calendar quarter to unlock complimentary lounge access in the current calendar quarter. A calendar quarter is defined as 1st January to 31st March, 1st April to 30th June, 1st July to 30th September, and 1st October to 31st December.
How to apply
You can apply for the PhonePe HDFC Bank Ultimo Credit Card exclusively through the PhonePe App. It cannot be applied for through HDFC Bank.
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Optimal Use & Break-even Analysis
The PhonePe HDFC Bank Ultimo Credit Card provides a 10% reward rate on specific categories on the PhonePe App. A maximum of 1,000 reward points can be earned in a calendar month. So, the cardholder can use the card for a maximum of Rs. 10,000 in a calendar month on these categories to earn the maximum 1,000 reward points.
Similarly, the card provides 5% reward points on select online platforms, subject to a maximum of 500 reward points in a calendar month. So, the cardholder can use the card for a maximum of Rs. 10,000 in a calendar month on these online platforms to earn a maximum of 500 reward points.
Finally, the card provides 1% reward points on scan and pay spends (RuPay credit card on UPI spends), subject to a maximum of 500 reward points in a calendar month. So, the cardholder can use the card for a maximum of Rs. 50,000 in a calendar month on scan and pay spends to earn a maximum of 500 reward points.
Comparison with Airtel Axis Bank Credit Card
The PhonePe HDFC Bank Ultimo Credit Card can be compared with the Airtel Axis Bank Credit Card as both provide cashback on utility bill payments and specific online platforms. The Airtel Axis Bank provides a 25% cashback on Airtel services like prepaid and postpaid mobile, broadband, WiFi, and DTH. However, the cashback on mobile services is restricted to Airtel only, and the maximum cashback is capped at Rs. 250 in a monthly billing cycle.
The PhonePe HDFC Bank Ultimo Credit Card provides a 10% reward rate on utility bill payments. However, the rewards apply to utility bill payments of all service providers, and not just Airtel. Also, the maximum capping in a calendar month is 1,000 reward points, higher than the Airtel Axis Bank Credit Card capping of Rs. 250 in a monthly billing cycle.
The Airtel Axis Bank Credit Card provides 10% cashback on Swiggy, Zomato, and Bigbasket. The cashback is subject to a maximum of Rs. 500 in a monthly billing cycle. The PhonePe HDFC Bank Ultimo Credit Card provides 5% rewards on specific online platforms like Amazon, Flipkart, Myntra, Ajio, Uber, Swiggy, and Zomato. So, while the Airtel Axis Bank Credit Card provides a higher cashback of 10%, it is limited to the food category. On the other hand, PhonePe HDFC Bank Ultimo Credit Card provides a lower 5% reward rate, but has a broader coverage, including marketplaces, fashion, cab service, and food.
Expert Verdict/Conclusion
The card provides an excellent 10% reward rate on PhonePe for categories like utility bill payments, travel bookings, and Pincode transactions. It is one of the rare credit cards that provides a 10% reward rate on booking train tickets.
Apart from the above, the card provides a good reward rate of 5% on specified online platforms, and a 1% on scan and pay transactions. So, individuals who use the PhonePe platform extensively, must consider the PhonePe HDFC Bank Ultimo Credit Card.