All You Need to Know About the New PhonePe–Utkarsh Wish Credit Card

PhonePe and Utkarsh Small Finance Bank have just launched a fresh credit card offering called Wish — and it has a unique twist. Unlike typical credit cards, this one is backed by a fixed deposit (FD). That means to get the card, you lock away some funds as an FD, which then acts as collateral for your credit limit. But the FD doesn’t sit idle — it continues to earn interest. This model is especially useful for users who are new to credit or live in regions where credit card penetration is low. Here's a full breakdown: 💡 Highlights & Benefits FD Backing & Safety You need to open an FD (starting as low as ₹2,000) which provides security for the card issuer. Meanwhile, your FD still earns interest — so there’s dual utility. Reward Structure 3% reward points on bill payments and recharges made through the PhonePe app 1% reward points on UPI (Scan & Pay) and select e-commerce purchases Bonus 200 points in any month where your total spends hit ₹15,000 or more Redemption & Simplicity Reward points are easy to understand — 1 point typically equals ₹1. The goal is to keep the program user-friendly and accessible. Fully Digital Experience From submitting documents to managing the card, everything is done via the PhonePe app, making it a seamless experience. Target Audience The card appeals particularly to: • First time credit users • Self-employed individuals • Users from tier-2 and tier-3 cities • People looking to build or improve their credit score ⚠️ Things to Watch Out For & Tips Check FD Requirements — Though ₹2,000 is the starting FD, your eligibility or applicable FD might vary depending on your profile. Monitor Reward Caps & Limits — Some reward categories might have caps or exclusions (e.g., only “select merchants”). Timely Usage for Bonus — To earn the 200 bonus points, you’ll need to cross spending thresholds in a month. Smooth Redemption — Since the aim is a simple 1:1 point-to-rupee model, redemption is straightforward compared to complicated loyalty systems.