HDFC Bank and PhonePe collaborated to launch two Co-branded Credit Card: Uno and Ultimo.
PhonePe HDFC Bank Uno is the base variant, and operates on the RuPay Network.
But how does it differ from the Ultimo?
Let’s find out in this detailed PhonePe HDFC Bank Uno Credit Card Review.
Overview
| Overview of PhonePe HDFC Bank Uno Credit Card | |
| Type | Co-branded Rupay Credit Card |
| Best For | UPI Spending on PhonePe |
| Reward Rate (%) | Up to 2% (on redeeming as cashback) |
| Joining Fee | Rs. 499 + GST |
| Annual Fee | Rs. 499 + GST |
| Annual Fee Waiver | On Annual Spend of Rs 1 lakh |
| Welcome Benefit | PhonePe Gift Voucher Worth Rs 499 |
PhonePe HDFC Bank Uno Credit Card Review: Overview
PhonePe HDFC Bank Uno is an entry-level card with a low joining and annual fee of Rs 499 + GST.
The annual fee can be waived on the spend of Rs 1 Lakh & above in the previous year.
Being the base variant, it does not deliver a wide-range of benefits like movie discount, and lounge visits.
The main USP is the 2% reward rate on specific PhonePe Categories like travel and hotel bookings.
Reward Points
| Spend Type | Reward Points (RP) | Cashback (%) | Monthly Capping On Reward Points | Optimum Monthly Spends |
|---|---|---|---|---|
| PhonePe Categories* | 2 RP Per ₹100 Spent | 2% | 500 Reward Points Per Month | ₹25,000 |
| Online Brands* | 1 RP Per ₹100 Spent | 1% | 500 Reward Points Per Month | ₹50,000 |
|
All Scan & Pay Spends (RuPay CC On UPI) | 1 RP Per ₹100 Spent | 1% | 500 Reward Points Per Month | ₹50,000 |
PhonePe HDFC Bank Uno Credit Card Review: Reward Points
PhonePe Specific Categories* : Recharges, Bill Payments, Travel Bookings (Flights, Buses, Trains, and Hotels), and Spends on Pincode (a hyperlocal delivery app by PhonePe)
Online Brands* : Amazon, Flipkart, Myntra, Ajio, Uber, Swiggy, and Zomato
So, the PhonePe HDFC Bank Uno Credit Card is a solid option for everyday spending like mobile recharges or travel bookings. We earn the highest 2% payback points on these categories.
For all other remaining categories, we earn 1% reward rate.
We cannot earn more than 500 reward points in a month.
Based on the capping, I have also calculated the optimum monthly spends for all the categories.
On the 2% categories, you need to spend Rs 25,000 in a month to earn all the capped 500 reward points.
The monthly optimal spend is Rs 50,000 for other 1% categories.
Reward Points Redemption
| Redemption Option | Value Of Each Reward Point | Minimum Balance For Redemption | Monthly Capping On Cashback |
|---|---|---|---|
| Against Statement Balance | 1 RP = ₹1 | 500 Reward Points | N/A |
|
SmartBuy Portal (Flights, Hotels, Catalogue And Airmiles) | 1 RP = ₹0.3 | N/A | N/A |
PhonePe HDFC Bank Uno Credit Card Review: Redemption Options
You can redeem your points in two ways:
- Either Against Outstanding Balance, or
- On the HDFC SmartBuy Portal
Obviously, the best option is to redeem as cashback against your outstanding balance.
Each reward point is worth Rs 1, and you get a decent 1:1 redemption value.
But you need to have minimum 500 reward points for the redemption.
No redemption fee is levied against the statement balance.
All the unredeemed or unused points become invalid after 2 years.
Welcome Benefit
Welcome benefit of Rs 499 is given to the cardmembers in the form of PhonePe Gift Card.
However, this is not issued in a single time.
On your 1st “RuPay CC on UPI” spend of minimum Rs 100, you’ll receive a PhonePe Gift Card of Rs 299.
Now, another 50% (Rs 250) is issued in a series of 10 PhonePe Gift Vouchers.
So, you’ll receive these vouchers one by one with minimum payment of Rs 100 each time.
Each gift voucher is worth Rs 25.
We can notice in the table that total Rs 499 {Rs 299 + Rs (25 x 10)} is issued to the user as welcome bonus.
You can easily take advantage and use these vouchers to cover the 1st year joining fee of Rs 499.
However, they are not going to entirely cover your joining fee. You still need to pay the GST charges of Rs 89.82 in additional.
Fuel Surcharge Waiver
Fuel surcharge waiver of 1% is also provided to the cardmembers on any fuel spend between Rs 400 and Rs 5000.
You can take up Rs 250 benefit in a month.
So, if you often refuel your vehicle, this tiny discount can become big savings in the long run.
Cons: What I Did Not Like?
1. Only 1% Cashback On Popular Online Brands
When you shop on popular online merchant like Amazon, Myntra, Swiggy, Uber, or Ajio, you get only 1% cashback.
We can easily earn 5% return using ICICI Amazon Pay or SBI Cashback on these categories.
2. Welcome Bonus is Not Given in a Single Time
I loved the intention to cover joining fees with the welcome benefit.
But, the steady approach of providing these bonuses may not appeal to everyone.
You’ve to wait till the 11th payment to earn all the PhonePe Gift Vouchers.
3. No Lounge Access
You do not get any domestic or international lounge visit with the PhonePe HDFC Bank Uno Credit Card.
As I’ve said, it is the inferior version and does not offer much beyond the reward points.
Pros: The Plus Points
Beside some notable gaps, there also are plus points in the PhonePe HDFC Bank Uno Credit Card.
1. 2% Reward Rate on Recharges & Bills, and Travel (Hotel, Flight, Bus, Train) Bookings Via PhonePe
PhonePe is one of the top UPI apps in India, and we use it for most of our online payments.
In such a case, Uno can turn your day-to-day PhonePe payments into a solid 2% back.
2. Decent 1:1 Redemption Value Against Statement Balance
On redemption of points against statement balance, the value of each reward point is Rs 1.
This gives a decent redemption ratio of 1:1 (No. of Reward Points : Value of Reward Points).
Hence, if you’ve 500 reward points, it can be redeemed for Rs 500 against your outstanding balance.
Who Should Apply?
You can apply for PhonePe HDFC Bank Uno Credit Card if:
- You are new to credit card
- You are a regular PhonePe and UPI user
- You spend more Online than Offline
- You spend more on utilities, recharges, or travel bookings
Bottomline
Overall, the PhonePe HDFC Bank Uno Credit Card is a solid option if you are deeply integrated into the PhonePe digital payment ecosystem.
The boosted rewards on PhonePe transactions and the convenience of UPI linking make it a compelling choice for this segment.
It might not not be the most versatile card for all types of spending.
But it definitely carves out a niche for the digitally savvy user in India.
This was all about the PhonePe HDFC Bank Uno Credit Card Review.
I hope you’ve loved the post and the simple writing style.
Till then,
HAPPY SAVING!!