The newly launched SBI credit cards, in collaboration with PhonePe, have been receiving a lot of public appreciation, mainly for the reward rates they offer. The cards come in two variants: the PhonePe SBI PURPLE, priced at ₹499 + GST, and the PhonePe SBI SELECT BLACK, which is being offered at ₹1,499 + GST. While the PURPLE variant seems to be just like a usual entry-level credit card with a 3% reward on spending, the SELECT BLACK offers a reward rate of up to 10%. The card provides no more than standard lifestyle perks, except for domestic lounge access and a free two-year Priority Pass membership with the SELECT BLACK variant. Keep reading for a detailed comparison of the features of both cards.
Annual Fee, Joining Perks, and Milestone Benefits
Based on your spending habits, you might want to choose either of the cards. The PURPLE Variant at ₹499 + GST is a beginner-friendly option that offers an annual fee reversal after spending ₹1 lakh using the card. It provides a PhonePe gift voucher equivalent to the joining fee paid by the cardholder. Additionally, you can receive ₹3,000 Yatra vouchers after spending ₹3 lakh in a year.
The SELECT BLACK variant of the same line has an annual fee of ₹1,499 + GST. This fee can be waived if the user spends over ₹3 lakh annually. A PhonePe voucher equal to the value of the onboarding fee will be given as a welcome bonus. Each year, after spending ₹5 lakh, a Yatra voucher worth ₹5,000 will be provided.
| Basis of Comparison | PhonePe SBI PURPLE | PhonePe SBI SELECT BLACK |
| Annual Fee | ₹499 + GST | ₹1,499 + GST |
| Joining Perks | PhonePe Gift Voucher Worth ₹500 | PhonePe Gift Voucher Worth ₹1,500 |
| Spend-Based Joining Fee Waiver | Annual Charges Reversed on Spends of ₹1 Lakh | Annual Charges Reversed on Spends of ₹3 Lakh |
| Milestone Benefits |
|
|
Value Back Comparison: PhonePe SBI PURPLE Vs SELECT BLACK
The reward points system on two of these cards is designed to reward PhonePe spending and therefore offers higher rewards for transactions made on the PhonePe platform. The table below details the reward rates offered by the two cards.
The reward redemption rate is the same for both cards at 1 RP = ₹1, applicable to both Statement Credit and Gift Vouchers.
| Reward Point Earning | ||
| Spend Type | PhonePe SBI PURPLE | PhonePe SBI SELECT BLACK |
| PhonePe Spends | 3 RPs/₹100 Spent (~ 3%) | 10 RPs/₹100 Spent (~ 10%) |
| Capped at 1000 RPs per Month | Capped at 2000 RPs per Month | |
| Eligible Online Spends | 2 RPs/₹100 Spent (~ 2%) | 5 RPs/₹100 Spent (~ 5%) |
| Capped at 1000 RPs per Month | Capped at 2000 RPs per Month | |
| Other Valid Spends | 1 RP/₹100 Spent (~ 1%) | 1 RP/₹100 Spent (~ 1%) |
| Capped at 1000 RPs per Month | Capped at 2000 RPs per Month | |
| Utilities Bills and Insurance Spends Outside PhonePe | 1 RP/₹100 Spent (~ 1%) | 1 RP/₹100 Spent (~ 1%) |
| Capped at 250 RPs per Month | Capped at 500 RPs per Month | |
| 1 Reward Point = ₹1 | ||
Other Travel Benefits
The two cards offer no luxury lifestyle perks except for a complimentary priority pass membership for the first two years and four free domestic lounge visits annually with SELECT BLACK; the PURPLE variant does not include these benefits.
Bottom Line
Out of the two cards, if there is to be a winner, it is clearly the PhonePe SBI SELECT BLACK, which is far ahead with its 10% return on PhonePe transactions and 5% on other online spends. It also offers minimal travel perks for a reasonable annual fee of ₹1,499 + GST. However, when it comes to choosing a credit card, there is no “One Size Fits All.” As a rational decision-maker, you should look at your expenses and decide if you would take full advantage of paying that annual fee to hold the card.
2 comments
Jay
The app says coming soon — any idea when the apply option will be available?
Kartik Kanwar
Well, people have started getting offers for both the HDFC and SBI PhonePe Credit Card on the app. Although the offers for SBI are quite high when compared to HDFC.