SBI Card and PhonePe have announced a strategic partnership aimed at accelerating the adoption of RuPay credit cards on UPI platforms. The collaboration is designed to enhance digital payment convenience for SBI Card users while expanding PhonePe’s merchant ecosystem.
Key Highlights:
-
The partnership enables SBI Cardholders to link their RuPay credit cards to PhonePe’s UPI interface, allowing seamless transactions at millions of merchants.
-
Users can earn cashback rewards of ₹50 on their first two eligible UPI transactions using linked SBI RuPay credit cards, with a minimum spend of ₹100 per transaction.
-
The offer is valid from August 31 to September 30, 2024, and is applicable only to users who have not previously linked their SBI RuPay credit card on PhonePe.
Strategic Context:
-
The move aligns with NPCI’s push to integrate credit cards into the UPI ecosystem, promoting cashless transactions and financial inclusion.
-
SBI Card aims to leverage PhonePe’s vast user base to drive card usage in Tier-II and Tier-III cities, where UPI penetration is high but credit card adoption remains low.
-
PhonePe benefits from increased transaction volumes and deeper engagement with high-value customers.
Market Outlook:
-
Analysts expect the partnership to boost SBI Card’s transaction volumes and fee income, especially in the retail and e-commerce segments.
-
The initiative may also pave the way for future co-branded offerings and embedded finance solutions between the two platforms.
Sources: PhonePe Offer Terms, SBI Card Corporate Filings, Economic Times, Business Standard (July 2025)