The PhonePe Ultimo Credit Card is a RuPay credit card that supports UPI payments through credit. It offers up to 10% cashback on spending through the PhonePe app, 5% on select online brands like Amazon and Swiggy, and 1% on UPI Scan & Pay transactions. The card also includes 8 visits to domestic airport lounges each year, depending on minimum quarterly spending, and allows direct cashback redemption as a statement credit. With an annual fee of ₹999, which is waived for yearly spending of ₹2 lakh, this card focuses on rewards within the PhonePe ecosystem. It is designed for digital-first users who want the convenience of UPI along with credit card benefits.
PhonePe Ultimo Credit Card Shopping Benefits
The PhonePe HDFC Bank Ultimo Credit Card rewards frequent online shoppers. It is especially beneficial for those who frequently use PhonePe and popular e-commerce sites. You earn 10% cashback on purchases made through the PhonePe app. This includes bill payments, recharges, travel bookings, and shopping via the Pincode store. However, this cashback is capped at ₹1,000 per month.
Additionally, the card offers 5% cashback on well-known online brands like Flipkart, Myntra, Ajio, Swiggy, Zomato, and Uber. This cashback is capped at ₹500 per month. You also receive 1% cashback on UPI Scan & Pay transactions made with the card through PhonePe, but this has a separate cap of ₹500 per month.
Keep in mind that these cashback benefits do not apply to spending on fuel, loading wallets, rent, insurance, or EMI payments. If your spending is mostly on daily necessities, online food, travel bookings, and digital shopping, this card provides good value for its annual fee, assuming you stay within the eligible categories and caps.
PhonePe Ultimo Credit Card Welcome Benefits
As a new cardholder, you receive a straightforward welcome benefit with the PhonePe HDFC Bank Ultimo Credit Card. After paying the joining fee of ₹999, you can get back the full amount as PhonePe gift cards, but it’s in two parts. First, you receive a ₹500 PhonePe gift card after making your first UPI transaction with this RuPay credit card through PhonePe. To access the remaining ₹500, you must complete 10 additional UPI transactions using the same card. Each transaction must be ₹50 or more. This arrangement encourages you to start using the card through UPI right away. While it’s not an instant welcome voucher, it helps you quickly recover the joining fee with basic usage.
PhonePe Ultimo Credit Card Lounge Access
The PhonePe HDFC Bank Ultimo Credit Card provides 8 visits to domestic airport lounges each year. However, you must spend at least ₹75,000 in a calendar quarter to qualify for 2 free visits in the next quarter. This means that getting lounge access is not automatic. It depends on how much you spent in the previous quarter and only activates if you reach the ₹75,000 limit. Once you qualify, you can use the visits at partner lounges throughout India, with a limit of two per quarter.
PhonePe Ultimo Credit Card Rewards and Redemption
The PhonePe HDFC Bank Ultimo Credit Card uses a straightforward cashback model, but instead of receiving direct cashback, you earn reward points. The advantage is that these points are easy to track and redeem. You can redeem the cashback as a direct statement credit, where ₹1 reward point equals ₹1, with a minimum redemption value of 500 points. This means the cashback directly lowers your card bill once you redeem it.
If you prefer, you can also use the points for flight and hotel bookings or gift vouchers through HDFC’s SmartBuy platform, but the value decreases to around ₹0.30 per point. For most users, redeeming as a statement credit offers the best value. One thing to keep in mind is that the reward points earned on this card expire after one year, so it’s important to redeem them regularly. There’s no automatic credit; you’ll need to manually redeem them through net banking or the HDFC app.
PhonePe Ultimo Credit Card Fees
| Particular | Details |
|---|---|
| Joining Fee | ₹999 + GST (hdfcbank.com) |
| Renewal Fee | ₹999 + GST (waived on ₹2 lakh in previous year) |
| Finance Charges | Up to 3.6% per month (~43.2% p.a.) |
| Late Payment Charges | ₹100–₹1,300 (slabs based on outstanding) |
| Cash Withdrawal Fee | Higher of 2.5% or ₹500 |
| Reward Redemption Fee | ₹99 + GST per redemption (non-statement credit) |
| Fuel Surcharge Waiver | 1% waiver on ₹400–₹5,000 fuel spend; capped at ₹250/month |
| Lounge Access | 8 domestic visits/year (2 per quarter) with ₹75,000/quarter prior spend |
| Card Replacement Fee | ₹100 + GST (as per PDF T&C) |
| Foreign Currency Markup | 3.5% markup on international transactions |
| Add-on Card Fee | Nil (no fee for additional cards) |
| Reward Point Validity | Points expire after 1 year |
| UPI Transaction Limit | ₹100,000/day (Rupee credit card via UPI) |
PhonePe Ultimo Credit Card Review
The PhonePe HDFC Bank Ultimo Credit Card is a good option for the middle class, especially for those who spend regularly on daily needs. You can earn up to 10% cashback on essential purchases like mobile recharges, utility bills, gas cylinder bookings, and other services through the PhonePe app. Additionally, the card provides 5% cashback on popular platforms such as Myntra, Flipkart, Uber, Swiggy, Zomato, and more, making it beneficial for both shopping and commuting.
One of its best features is the straightforward reward system. The card has a 1:1 reward ratio, meaning 1 reward point is equal to ₹1 when you redeem it as a statement credit. There’s no fee for redeeming points against your bill, which makes it more rewarding than many others in this category. You can also redeem for vouchers, but that involves a small fee.
In terms of costs, the joining and renewal fees are ₹999, but you can recover the joining fee through welcome benefits a ₹500 PhonePe voucher and ₹500 cashback after completing 10 UPI transactions of ₹50 or more. To save money over time, the annual fee is waived if you spend ₹2 lakh in a year, which is reasonable if you use the card for daily expenses and online shopping. However, the foreign currency markup is relatively high at 3.5%, making it less ideal for international use. Still, for domestic digital spenders who use UPI and e-commerce, this card fits well.
Frequently Asked Questions
- What is the cashback rate on the PhonePe HDFC Bank Ultimo Credit Card?
You earn 10% cashback on PhonePe app purchases like bill payments and recharges. You receive 5% cashback on select online brands such as Amazon, Flipkart, Swiggy, and Zomato. You also get 1% cashback on UPI Scan & Pay transactions. There are monthly limits for each category. - Is the PhonePe HDFC Bank Ultimo Credit Card good for UPI payments?
Yes, this card is designed for UPI. As a RuPay credit card, it can connect to UPI apps like PhonePe. This allows you to make UPI payments using your credit card while earning cashback on eligible purchases. - How can I get free lounge access with the PhonePe HDFC Ultimo Credit Card?
You can receive 2 complimentary domestic lounge visits every quarter. To qualify, you must spend ₹75,000 or more in the previous quarter. If you meet this condition, you can have a total of 8 visits per year. - What is the annual fee for the PhonePe HDFC Bank Ultimo Credit Card, and how can I waive it?
The annual fee is ₹999 plus GST. You can waive it by spending ₹2,00,000 or more in the previous card year. - How do I redeem cashback from the PhonePe HDFC Credit Card?
You can redeem cashback as a direct statement credit, where 1 point equals ₹1. You can complete the redemption through net banking or HDFC’s rewards portal, with a minimum of 500 points needed. - Does the PhonePe HDFC credit card provide cashback on rent or wallet payments?
No, the card does not provide cashback on wallet loads, rent payments, fuel, insurance, education, or EMI transactions. These purchases are not included in the reward categories.
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