Zed gets BSP nod as new credit card issuer

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has granted Zed Financial PH Inc., a credit-led neobank, a certificate of authority to operate as a standalone credit card issuer.

This would make Zed a holder of a non-bank credit card issuer license after operating in a BSP-sanctioned pilot for the past six months.

“Our BSP license makes us the first Philippine neobank to offer credit cards as a standalone issuer,” Danielle Cojuangco Abraham, co-founder and CEO of Zed, said in a statement.

“This independence and our foundation as a technology company means we can rapidly and continuously improve our product, unconstrained by legacy systems,” she said.

After securing its license from the central bank, the Zed card will officially be rolled out to the public on an invite-only basis, starting with its waitlist. In the coming months, those who have signed up for the waitlist will receive invitations to apply for a Zed card.

The neobank saw an overwhelming demand for its no interest, no fees Mastercard Titanium credit card, gathering around 40,000 sign ups since launching its waitlist in March this year.

“Given the significant demand, it will take some time for us to open up spots for all 40,000 individuals on the waitlist,” Abraham said.

“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,” she added.

The Zed credit cards has no annual fees, foreign transaction fees or other fees. This would allow customers to simply pay for their purchases. Clients can also get up to 31 days of credit with zero interest.

Zed also determines credit limits by analyzing a user’s current and potential income among 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 really strong engagement among our early cardholders, with transaction volume growing 100 percent month over month and 48 percent of cardholders transacting daily,” Zed cofounder Steve Abraham said.

“We’re obsessed with delivering an exceptional customer experience. 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,” he added.

Zed earlier raised $6 million in seed funding from Peter Thiel’s Valar Ventures as well as founders and operators from Nubank, Mercury, Cred and Square.