PhonePe Launches Credit Card With 5% Cashback on UPI Transactions, Targets 50M Users by 2027
PhonePe has entered the credit card market with a co-branded card offering 5% cashback on UPI transactions, positioning itself to challenge HDFC and SBI Cards.
PhonePe has officially launched its first credit card in partnership with HDFC Bank, offering 5% cashback on UPI transactions and 2% on all other spends — a market-leading rewards structure designed to challenge incumbent card issuers.
Product Features
The PhonePe Credit Card features no annual fee for the first year and a ₹499 annual fee thereafter, waived on annual spends of ₹1 lakh. The card is issued on the Visa network and accepted globally.
Growth Target
PhonePe aims to acquire 50 million cardholders by 2027, which would make it one of the top three credit card issuers in India by count.
Market Context
India's credit card market has 110 million active cards, with HDFC Bank leading at 22 million. PhonePe's distribution advantage — 550 million registered users — gives it a unique acquisition channel.
Risk Assessment
Analysts note that while PhonePe's distribution is unmatched, credit card lending requires sophisticated underwriting capabilities that the company is building from scratch. The partnership with HDFC Bank helps mitigate this risk initially.
Related Articles
WhatsApp Rolls Out Meta AI Voice Assistant in India with Zomato, Ola, and BookMyShow Integration
Meta has begun rolling out its AI assistant within WhatsApp in India, featuring voice conversations, image generation, and integration with popular local services.
India's Semiconductor Mission Lands TSMC, Micron, and Intel Commitments Worth $30 Billion
India's ambitious semiconductor manufacturing mission has secured binding commitments from TSMC, Micron, and Intel totaling $30 billion in investment, positioning the country as a chip production hub.
Bengaluru Fintech PayFlow Raises $120M Series C to Dominate B2B Payments Across Southeast Asia
PayFlow, a Bengaluru-based fintech startup, has secured $120 million in Series C funding led by Sequoia Capital to expand its B2B payment infrastructure across Southeast Asia.
India's UPI Crosses 20 Billion Monthly Transactions — World's Largest Real-Time Payments Network
India's Unified Payments Interface has reached a historic milestone, processing over 20 billion transactions worth ₹23 lakh crore in a single month.