Credit-led neobank Zed gets certificate from BSP

CEBU, Philippines — Credit-led neobank Zed announced that it has received its Certificate of Authority to Operate as a standalone credit card issuer from the Bangko Sentral ng Pilipinas (BSP).

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

Abraham emphasized that this independence and its 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.

According to Abraham, Zed has seen overwhelming demand since it offers 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, it will take some time for us to open up spots for all 40,000 individuals on the waitlist. 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!” added Abraham.

Founded by Silicon Valley engineers Daniel 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.

The company claimed that It is so far the only credit card in the Philippines with no fees, no revolving interest, and smart credit limits.

“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,” 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,” Steve added.

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.

Zed, is a credit card built for young professionals in Southeast Asia, starting with the Philippines, challenging the status quo and delivering a smart, frictionless, and transparent experience powered by groundbreaking technology.

The company is cofounded by Stanford engineers and Y Combinator Alumni Danielle Cojuangco Abraham and Steve Abraham and backed by Peter Thiel’s Valar Ventures.

Headquartered in San Francisco and Manila, Zed (Zed Financial PH, Inc.) is a credit-led neobank operating under a Non-Bank Credit Card Issuer license regulated by the Bangko Sentral ng Pilipinas (BSP) and a principal member of Mastercard.