Tuesday, 2 July 2024
Zed secures BSP licence, invites 40k waitlist
Zed, a credit-led neobank, has received its Certificate of Authority to Operate as a standalone credit card issuer from the Bangko Sentral ng Pilipinas (BSP).
Danielle Cojuangco Abraham, co-founder of Zed, said: "Our BSP licence makes us the first Philippine neobank to offer credit cards as a standalone issuer. This independence and our foundation as a technology company means we can rapidly and continuously improve our product, unconstrained by legacy systems.”
After operating in a BSP-sanctioned pilot for the last six months, the Zed Card is officially rolling out to the public 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. Danielle Abraham said: “We’re overwhelmed by the excitement for Zed and the number of signups we’ve received. Given the significant demand, it will take some time for us 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 that’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!”
Founded by Silicon Valley engineers, Danielle Abraham 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 powerful credit card. It is the only credit card in the Philippines with:
● No fees. Zed has no annual fee, foreign transaction fees or any other fees, so customers simply pay for their purchases, nothing more.
● No revolving interest. Customers get up to 31 days of credit with zero interest with no 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 analysing 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.
Steve Abraham, co-founder of Zed, said: “We’ve seen really strong engagement among our early cardholders, with transaction volume growing 100% month over month and 48% of cardholders transacting daily. 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, Peter Thiel’s Valar Ventures, and founders and operators from Nubank, Mercury, Cred, and Square.
Re-disseminated by The Asian Banker
