Zed, a credit-led neobank, has received its Certificate of Authority from the Bangko Sentral ng Pilipinas (BSP), officially becoming the first Philippine neobank to operate as an independent credit card issuer.
“This independence and our foundation as a technology company mean we can rapidly and continuously improve our product, unconstrained by legacy systems,” said Danielle Cojuangco Abraham, co-founder, Zed.
The announcement follows a six-month pilot phase during which Zed’s Mastercard Titanium Credit Card was trialed. According to Zed, strong demand prompted the neobank to roll out its credit card on an invite-only basis, starting with its waitlist, which has amassed nearly 40,000 sign-ups since March.
“We’re overwhelmed by the excitement for Zed and the number of signups we’ve received,” Abraham said. She assured prospective users that the company is prioritizing a smooth onboarding process, saying, “Our priority is onboarding new users at a pace where we can ensure a stellar experience for every Zed customer.”
Credit history
Founded by Danielle Cojuangco Abraham and Steve Abraham, both Silicon Valley engineers, Zed is focused on reimagining the credit card experience. The Zed Card offers several unique features: no annual or foreign transaction fees, and no revolving interest. Cardholders can enjoy up to 31 days of interest-free credit, a significant shift from traditional credit models.
Zed’s approach to determining credit limits is also innovative. Instead of relying solely on traditional credit scores, the company analyzes a user’s current and potential income, allowing young professionals with limited credit history to access credit responsibly.
Steve Abraham highlighted the strong engagement among early adopters, noting that transaction volumes have grown by 100% month-over-month and nearly half of their users are transacting daily.
The company has secured $6 million in seed funding from Valar Ventures, founded by Paypal’s Peter Thiel, with additional support from influential figures in the fintech industry.