Bills are something we are all quite familiar with, whether it’s electricity, water, or even credit card bills for most of us. While credit cards are considered instruments of savings, there are only a few focused cards that offer rewards on utility bill payments, often with limits, caps, and certain conditions.
The Airtel Axis Credit Card is one such popular offering that provides rewards on utility bill payments. Airtel Axis has dominated the utility bill payment segment in the Indian credit card scene for a long time, surviving several devaluations and still offering up to 25% savings on all major utility payments. But after the latest devaluation in April 2026, there have been several changes to the cards, including the addition of a complicated capping structure. This calls for a new and better offering for utility bill payments.
Good for us. HDFC Bank, the leading credit card issuer in India, has entered the utility bill payments space with the highly rewarding PhonePe HDFC Ultimo Credit Card.
With these two major credit cards now offering benefits on utility bill payments, several questions arise:
- Which card offers better rewards on bill payments?
- Which one should you apply for, or should you consider applying for both?
With our comparison of the PhonePe Ultimo and Airtel Axis Credit Card, all such queries shall be answered.
Utilities Made Rewarding
The most important aspect when comparing these two cards is the cashback or reward points they offer.
| Categories | Airtel Axis | HDFC PhonePe Ultimo |
| Savings on Utility Bills | 25% Cashback On Airtel Recharges (Capped At 2× Base Cashback In Same Statement Month). 10% Cashback On Utility Bills (Capped At Base Cashback In Same Statement Month). | 10% Cashback Via PhonePe (1,000 Reward Points Per Month) |
| Other Benefits | 10% Value Back On Zomato, Blinkit & District (Up To ₹200 Per Partner Per Month). 1% Cashback On All Other Spends | 5% Reward Points for Select Online Merchants like Amazon, Flipkart, Ajio, and Swiggy. 1% Rewards Via Scan & Pay |
Fee Structure
Let’s compare the fees and charges associated with both these cards.
| Categories | Airtel Axis | HDFC PhonePe Ultimo |
| Joining Fee | ₹500 + GST (~₹590) | ₹999 + GST (~₹1,179) |
| Annual Charges | ₹500 + GST (~₹590) | ₹999 + GST (~₹1,179) |
| Interest Rates | 3.75% Per Month (55.55% Per Annum) | 3.75% Per Month (45% Per Annum) |
Free Airport Lounge Access
When it comes to airport lounge access, the HDFC PhonePe Ultimo now has the edge, as the Airtel Axis Credit Card no longer offers this benefit.
| Categories | Airtel Axis | HDFC PhonePe Ultimo |
| Airport Lounge Access | N/A | 2 Lounge Visits Each Quarter |
| Spend-Based Criteria | N/A | Spends of ₹50,000 or More in the Previous Quarter |
HDFC Ultimo or Airtel Axis – Best Choice for Utility Bills?
By now, most of us have likely formed an opinion on which credit card suits us best based on our personal preferences and spending habits.
The HDFC PhonePe Credit Card now takes the lead for utility bill rewards and travel benefits like airport lounge access. Earlier, it was hard to pick any card over the Airtel Axis Credit Card, but now it’s possible since the card has been heavily devalued and cashback is capped, especially on spends in the 1% category.
Feel free to share your choice or any thoughts in the comments section!
2 comments
Jayanth Kumar Moram
The choice seems straightforward: Axis Airtel for Airtel customers, and PhonePe for everyone else. Yet, a crucial concern remains: how much can we truly rely on these tech-app affiliated credit cards? Their vulnerability to sudden devaluations of benefits is a major point of apprehension for me.
Kartik Kanwar
Well the choice is now easy and obvious. No one would opt for Airtel Axis after the April devaluation.