Zed Philippines gets credit card issuer license

Zed Philippines gets credit card issuer license

NEOBANK Zed Philippines, Inc. has received its certificate of authority to operate as a standalone credit card issuer from the Bangko Sentral ng Pilipinas (BSP), it said on Tuesday.

“Our BSP license 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,” Zed Co-Founder Danielle Cojuangco Abraham said in a statement.

Zed operated under a BSP-sanctioned pilot for the last six months, it said.

The Zed Card will be rolled out on an invite-only basis, starting with its waitlist. The Mastercard Titanium credit card has recorded close to 40,000 sign-ups since the waitlist was launched in March, the company said.

Those who signed up will be invited to apply for a Zed Card in the coming months, it added.

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

Zed Co-Founder Steve Abraham said that among its early cardholders, transaction volume is growing by 100% month over month, with 48% of customers 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,” he said.

The Zed Card has no annual fee or foreign transaction fees. Customers get up to 31 days of credit with zero interest and no revolving balance or interest charges.

Zed also sets each cardholder’s credit limit based on their current and future income, among other data. — AMCS