Zed, the brainchild of two Stanford engineers and Y-Combinator alumni, has introduced the first credit card tailored specifically for young Filipino professionals. Addressing the common hurdles faced by this demographic in obtaining credit cards, Zed aims to revolutionize the banking experience in the Philippines.
Unlike traditional credit cards, Zed’s Mastercard Titanium offering features a range of customer-friendly features. These include no interest, no foreign transaction fees, and no annual fees. The card is complemented by a user-friendly app, providing real-time transaction tracking, spending limit customization, and fraud protection features.
“As a technology company from Day One, we don’t have to pay for costly overhead like physical branches or bloated headcounts for manual, back office processes,” said Steve Abraham, co-founder, Zed. “We are able to pass these savings on to customers in the form of no revolving interest, no fees, and excellent customer service. We started Zed on the premise that you could build financial services where a customer’s success was a core value.”
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In a country where access to credit products remains a challenge, particularly for young people, Zed’s arrival is significant. A study by TransUnion Philippines revealed that while 94% of Filipino Gen Zs recognize the importance of credit, only 35% feel they have sufficient access to such products.
Virtual cards
According to Zed, it now has nearly 25,000 sign-ups on the waitlist within the first three weeks. The company’s revenue model, based on interchange fees rather than punitive charges for customers, aligns its success with that of its users.
The app provides unlimited virtual cards for enhanced security, zero liability for unauthorized transactions, and seamless payment options, including instant settlement via QR codes.
Zed’s streamlined application process, conducted entirely through the app, eliminates the need for complicated documentation or in-person visits. Credit limits are determined based on current and projected income, catering to young professionals with limited credit histories.