Synopsis– SBI card and PhonePe’s co-branded credit cards—PURPLE and SELECT BLACK—combine UPI convenience with credit rewards, with an entirely digital and app-based experience. Targeted at the digital-first consumer in India, the card enables easy onboarding, elevated cashback point accumulation, and smart integration, representing the future of credit in the mobile-first economy.
On July 22, 2025, SBI Card and PhonePe launched two co-branded credit cards, PURPLE and SELECT BLACK. While they are co-branded, they offer UPI-based credit payments, high rewards, and complete digital control through the PhonePe app. In this piece, I will examine the features and benefits of the two card products, their strategic significance, and how they may transform the way that Indians access, manage, and use credit.
Meet the Partners: SBI Card and PhonePe
SBI Card (Credit Expertise at Scale): SBI Card, India’s second-largest credit card issuer, brings decades of experience in credit underwriting, credit risk management, and financial infrastructure in support of a broad customer base across the country.
PhonePe (UPI Leader with 500M+ Users): With over 500 million registered users, PhonePe has a strong leadership position in UPI transactions and mobile payments! PhonePe is expanding its commerce ecosystem, including an app called the Pincode app that allows people to connect with everyday digital.
A New Strategic Partnership
This partnership merges SBI’s credit backbone and PhonePe’s large and digital-first audience to replicate the UPI experience for credit users. It builds on existing bank–fintech partnerships like Axis–Flipkart or HDFC–Paytm to deliver seamless and rewarding access to credit.
The Cards: PURPLE vs SELECT BLACK
SBI Card, in partnership with PhonePe, introduced two co-branded credit cards targeting two distinct consumer segments: entry-level PURPLE for value, and premium SELECT BLACK. Both cards are completely integrated with the PhonePe app, with UPI links, digital onboarding, and deep rewards.
PhonePe SBI Card PURPLE (Entry Level)
- Joining Fee: ₹499 + GST (waived on ₹1 lakh annual spend)
- Welcome Benefit: ₹500 PhonePe gift voucher
- Key benefits:
- 3% cashback on PhonePe and Pincode spend
- 2% cashback on selecting online merchants (Flipkart, Swiggy, Myntra)
- 1% base cashback on all other eligible spend
- Milestone Benefit (spend annual ₹3,00,000 to get ₹3,000 Yatra travel voucher)
- Additional benefits
- 1% fuel surcharge waiver across all petrol pumps in India, on transactions from Rs. 500 up to Rs. 3,000, exclusive of GST and other charges
- Contactless payments
- Best for: Frugal users and general PhonePe shoppers who want simple, value-driven credit benefits.
PhonePe SBI Card SELECT BLACK (Premium)
- Joining Fee: ₹1,499 + GST (waived on ₹3 lakh a year spend)
- Welcome Benefit: ₹1,500 PhonePe gift voucher
- Rewards Program:
- 10% cashback on spending on PhonePe and the Pincode app,
- 5% cashback on top players (eg, Amazon, Zomato, etc.),
- 1% cashback on all other eligible spends.
- Milestone Benefit: Spend ₹5,00,000 annually and receive a ₹5,000 Yatra Travel voucher.
- Other Benefits:
- 4 complimentary Domestic Airport Lounge visits/year.
- Complimentary Priority Pass membership for International Lounges.
- 1% fuel surcharge waiver across all petrol pumps in India, on transactions from Rs. 500 up to Rs. 4,000, exclusive of GST and other charges
- Contactless payments.
- Great for: Often travelling, digital-savvy and big spenders looking for a better level of rewards and travel benefits.
Seamless Integration with UPI & App
The cards offer the revolutionary feature of RuPay-UPI integration, which the RBI launched in 2022. Customers can tokenise their credit card and use UPI to make payments at their local store or utility counters, and online and earn cash back even on UPI spends! Unlike debit cards or wallets, these cards offer the credit reward component of a credit card with the ease and exclusivity of UPI. The entire process of application, usage, tracking status and rewards redemptions—all happen within the PhonePe app.
Also read: HSBC RuPay Credit Cards Launched: What Makes the Platinum & Cashback Cards Stand Out?
Who Should Get These Cards?
- PhonePe Loyalists: If you regularly use PhonePe for recharges, bill payments, or Pincode orders, the CLEAR card will make your cashback come through quickly and can easily amount to a considerable amount.
- Online Shoppers: Both select and select black products offer enhanced rewards for top e-commerce and food delivery platforms, so they are perfect for the digital merchant.
- Frequent Travellers: CLEAR BLACK adds value with free airport lounge access and travel vouchers based on milestones achieved, giving real value for frequent travellers.
- Gen Z & Millennials: Digital natives will appreciate the app-first experience – instant issuance, real-time spend tracking, and Pay UPI ability.
- Value Seekers: Welcome gift vouchers will exceed the joining fee, making the first year free; an easy win for value hunters craving rich features.
Application Process & User Experience
- Seamless Onboarding: Consumers are able to apply in the PhonePe app. The entire application process is digital with instant KYC and credit verification.
- Phased Launch: Card issuance is being rolled out in compliance with the eligible users’ app activity and credit history.
- Instant Access: Once approved, a virtual card is issued immediately for online transactions. A physical card is optional for offline purchases and lounge access.
- UPI Connection: RuPay cardholders can instantly activate tokenised UPI payments with zero additional set-up.
- Combined Dashboard: Everything from your spending history and bills, all the way to rewards, will be in the PhonePe app. Users will not have to login to third-party sites or bank portals, providing them with a truly integrated, app-first experience with credit.
Strategic Impact on the Market
- For Banks: SBI gains access to UPI-heavy, digital-forward users—many of whom are credit-light users—and is bringing them into the formal credit ecosystem.
- For PhonePe: This launch elevates PhonePe from a UPI and payment service into a full-stack financial services platform, expanding into credit, lending, and rewards.
- For Consumers: This removes the ongoing divide between digital payments and credit cards and provides a seamless, app-managed experience for consumers.
- For Competitors: Companies such as Paytm, Google Pay, and Amazon Pay need to allow for credit and rewards on their platforms vertically or have to launch similar products with a co-brand.
- For the Industry: This represents a structural transition from traditional banking to UPI-first, lifestyle-oriented credit solutions and transitioning how Indians access and experience credit in the digital world.
Conclusion
The PhonePe–SBI credit cards PURPLE and SELECT BLACK represent a new epoch of app-regulated, UPI-enabled credit in India. They are structured for the digital-first individual, offering seamless onboarding, exceptional rewards opportunities, and everyday accessibility. The PhonePe credit cards integrate credit, payment, and loyalty into a single experience for PhonePe users. The launch is a statement of intent to move to smart, app-driven financial products for newer digital and mobile lifestyles.
Written by N G Sai Rohith
