Steve Abraham and Danielle Cojuangco Abraham, Founders of Zed.
The Bangko Sentral ng Pilipinas (BSP) issued credit-led neo bank Zed, its Certificate of Authority to Operate as a standalone credit card issuer after completing the six months of BSP-sanctioned pilot testing.
"Our BSP license makes us the first Philippine neobank to offer credit cards as a standalone issuer," said Danielle Cojuangco Abraham. This independence and our foundation as a technology company mean we can rapidly and continuously improve our product, unconstrained by legacy systems."
The Zed Card will roll out on an invite-only basis, starting with its waitlist. Zed has seen overwhelming demand for its no interest, no fees Mastercard Titanium Credit Card, garnering close to 40,000 sign ups since launching its waitlist in March this year.
Those who have signed up for the waitlist will receive invitations to apply for a Zed card over the coming months. "We're overwhelmed by the excitement for Zed and the number of signups we've received. Given the significant demand, we will need to open up spots for all 40,000 individuals on the waitlist. Rest assured, we're already sending out invitations and will get to everyone who's signed up. Our priority is onboarding new users at a pace where we can ensure a stellar experience for every Zed customer, so hang tight!" said Danielle Cojuangco Abraham, Zed cofounder and CEO.
Founded by Silicon Valley engineers Danielle Cojuangco and Steve Abraham, Zed is reimagining the credit card from the ground up, leveraging technology to empower the next generation of Filipino professionals with the most potent credit card. It is the only credit card in the Philippines with:
No fees. Zed has no annual, foreign transaction, or any other fees, so customers pay for their purchases and nothing else.
There is no revolving interest. Customers can get up to 31 days of credit with 0 interest without fear of revolving their balance and incurring interest charges.
Beyond its unique business model that does not rely on interest revenue, Zed introduces a revolutionary approach to credit limits:
Smart credit limits: Zed determines credit limits by analyzing a user's current and potential income among other other data. This approach empowers young professionals with limited credit history to build credit responsibly and avoid limitations based solely on traditional credit scores.
"We've seen robust engagement among our early cardholders, with transaction volume growing 100% month over month and 48% of cardholders transacting daily," said Zed cofounder Steve Abraham. "We're obsessed with delivering an exceptional customer experience, and our early usage reaffirms our view that the next generation is hungry for a completely different credit card experience that cuts out expensive fees, supports responsible spending, and provides seamless control over your account."
Zed has raised $6 million in seed funding from Paypal founder and early Facebook investor PayPal, Peter Thiel's Valar Ventures, and founders and operators from Nubank, Mercury, Cred, and Square.
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