PhonePe Partners with Utkarsh Small Finance Bank to Launch FD-Backed Wish Credit C

In a step aimed at expanding credit access across India’s growing digital economy, PhonePe has joined hands with Utkarsh Small Finance Bank to launch the Wish Credit Card. The initiative targets first-time credit users and customers in tier-2 and tier-3 cities, combining the simplicity of digital banking with the benefits of secured credit.

A Savings-Backed Approach To Credit

Unlike conventional cards, the Wish Credit Card is backed by a Fixed Deposit (FD) starting from ₹2,000, which acts as both a security and an interest-earning asset for the cardholder. The FD secures the credit limit, allowing users to spend responsibly while earning returns on their deposit. Issued on the RuPay network, the card supports UPI-based transactions and rewards customers for their digital payments.

Cardholders can earn 3% reward points on monthly recharges and bill payments made through the PhonePe app, 1% reward points on Scan & Pay and select eCommerce purchases, and 200 bonus reward points each month on spends of ₹15,000. Reward points can be redeemed at a rate of 1 point = ₹1, offering tangible value for regular users.

A Seamless Digital Experience

The entire onboarding process is digital-first, allowing users to apply, open an FD, and start using their card directly through the PhonePe app. The rollout will be conducted in phases to ensure smooth adoption nationwide.

As per the news reports, Deep Agrawal, Head of Payments at PhonePe, said the new product would “make credit products simpler and more accessible for users.” Meanwhile, Govind Singh, MD & CEO of Utkarsh Small Finance Bank, noted that the FD-backed model “helps users earn interest while simultaneously building their credit profile.”

About PhonePe & Utkarsh Small Finance Bank

Founded in 2016, PhonePe is one of India’s largest fintech platforms, offering payments, investments, insurance, and digital commerce solutions. With over 61 crore registered users and a merchant base exceeding 4.4 crore, the company continues to lead India’s digital financial revolution.

Utkarsh Small Finance Bank, established in 2016, is a fast-growing financial institution focused on empowering underserved and unbanked segments through inclusive banking. The bank provides a wide range of retail and MSME financial products and has expanded its presence across India with a customer-centric approach and robust digital solutions.

Read More: UPI Recorded Marginal Dip in September 2025: PhonePe and Google Pay Maintained Dominance!

Conclusion

The Wish Credit Card reflects the shared vision of PhonePe and Utkarsh Small Finance Bank to redefine credit access in India. By combining digital convenience with a secure, FD-backed credit model, the partnership aims to empower millions of new users to build credit histories and participate in India’s expanding digital financial ecosystem.

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