Neobank secures BSP license in the Phillipines

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).

Founded by Silicon Valley engineers, Danielle Cojuangco Abraham and Steve Abraham, Neobank offers the only credit card in the Philippines with no annual fees or foreign transaction fees, as well up to 31 days of credit with 0 interest.

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The BSP license makes Zed the first Philippine neobank to offer credit cards as a standalone issuer, according to Danielle Cojuangco Abraham, co-founder and co-CEO of Zed Financial Inc. "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. Those who have signed up for the waitlist will receive invitations to apply for a Zed card over the coming months.

Due to the significant demand, Neobank said it would take some time to open up spots for all 40,000 individuals on the waitlist but are already in the process of sending out invitations.

“Our priority is onboarding new users at a pace where we can ensure a stellar experience for every Zed customer, so hang tight,” said Danielle Abraham.

Zed determines credit limits by analysing 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% month over month and 48% of cardholders transacting daily,” said 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.”

Zed has raised US$6 Million in feed funding from Paypal Founder and early Facebook investor, Peter Thiel’s Valar Ventures, and founders and operators from Nubank, Mercury, Cred, and Square.

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