PhonePe HDFC Ultimo vs Airtel Axis Credit Card: Which Is Better for Utility Bill Payments?

Utility bill payments are among the most common monthly expenses for most users, whether it’s electricity, broadband, water bills, or mobile recharges. While many credit cards offer rewards on shopping and travel, only a few cards specifically focus on utility bill savings.

For a long time, the Airtel Axis Credit Card dominated the utility cashback segment in India. However, after multiple devaluations and cashback cap changes in 2026, users have started exploring better alternatives.

Now, HDFC Bank has entered the segment with the PhonePe HDFC Bank Ultimo Credit Card, creating strong competition in the utility bill payment category.

So which card is better for utility payments and daily spending? Let’s compare both cards in detail.

Utility Bill Rewards Comparison

The most important comparison between these two cards is the rewards structure for utility payments.

Airtel Axis Credit Card Benefits

The Airtel Axis Credit Card still remains attractive for Airtel users.

Key Benefits

• 25% cashback on Airtel recharges
• 10% cashback on utility bill payments
• Additional benefits on:
  • Zomato
  • Blinkit
  • District

However, the latest devaluation has added complicated cashback caps and restrictions.

PhonePe HDFC Ultimo Credit Card Benefits

The PhonePe HDFC Bank Ultimo Credit Card focuses heavily on utility and digital transactions.

Key Benefits

• 10% cashback via PhonePe utility payments
• Up to 1,000 Reward Points monthly
• 5% rewards on:
  • Amazon
  • Flipkart
  • Ajio
  • Swiggy
• 1% rewards on UPI Scan & Pay transactions

The addition of UPI rewards gives it an edge for users heavily using PhonePe and QR-based payments.

Fees & Charges Comparison

The Airtel Axis card is clearly cheaper in terms of annual fees.

However, the higher annual fee of the HDFC Ultimo may be justified for users maximizing utility cashback and lounge access benefits.

Airport Lounge Access Comparison

This is one area where the HDFC Ultimo clearly outperforms Airtel Axis after recent devaluations.

The removal of lounge access from the Airtel Axis Credit Card significantly reduced its travel value proposition.

Which Card Is Better?

Choose Airtel Axis Credit Card If You:

• Use Airtel services heavily
• Want lower annual fees
• Spend regularly on:
  • Airtel recharges
  • Zomato
  • Blinkit
• Prefer straightforward cashback

Choose PhonePe HDFC Ultimo If You:

• Make high utility bill payments
• Use PhonePe frequently
• Prefer UPI Scan & Pay rewards
• Want airport lounge access
• Spend regularly on online shopping

Should You Apply for Both?

Some users may actually benefit from using both cards strategically.

Example Strategy

• Use Airtel Axis for:
  • Airtel recharges
  • Food delivery cashback
• Use PhonePe HDFC Ultimo for:
  • Utility bill payments
  • UPI transactions
  • Online shopping
  • Lounge access

This combination can maximize cashback across multiple categories.

Bottom Line

The Airtel Axis Credit Card was once considered the undisputed king of utility bill cashback cards. However, after recent devaluations and cashback caps, its overall value proposition has weakened.

The PhonePe HDFC Bank Ultimo Credit Card now emerges as a stronger overall option for users looking for:

• Utility bill rewards
• UPI cashback
• Online shopping benefits
• Airport lounge access

That said, the best choice ultimately depends on your spending habits and whether you prioritize cashback simplicity, Airtel-specific benefits, or broader digital payment rewards.