Credit-led neobank Zed has received its Certificate of Authority to operate as a standalone credit card issuer from the Bangko Sentral ng Pilipinas (BSP).

After operating in a BSP-sanctioned pilot for the last six months, the Zed Card is now being rolled out to the public on an invite-only basis, beginning with its waitlist.

Zed has seen sizable demand for its no interest, no fees Mastercard Titanium Credit Card, with nearly forty thousand sign-ups since launching its waitlist in March this year.

Founded by Silicon Valley engineers Danielle Cojuangco Abraham and Steve Abraham, Zed claims to reimagine the credit card, leveraging technology and data analytics to determine credit limits, with the goal of empowering the next generation of Filipino professionals.

It says it is the only credit card in the Philippines with no fees, including no annual fee, foreign transaction fees, or any other fees, so customers will reportedly pay only for their purchases, nothing more.

Additionally, customers will reportedly receive up to thirty-one days of credit with zero interest, without incurring interest charges and revolving interest. Those who have signed up for the waitlist will receive invitations to apply for a Zed card over the coming months, with the co-founders assuring that all will receive it.

“Given the significant demand, it will take some time for us to open up spots for all forty thousand individuals on the waitlist[…] Our priority is onboarding new users at a pace where we can ensure a stellar experience for every Zed customer,”

said Danielle Cojuangco Abraham, Zed co-founder and CEO.

The credit-led neobank says it introduces a different approach to credit limits by determining credit limits through analysing a user’s current and potential income among other data.

This approach aims to empower young professionals with limited credit history to build credit responsibly and avoid limitations based solely on traditional credit scores.

“We’ve seen strong engagement among our early cardholders, with transaction volume growing month over month and forty-eight percent of cardholders transacting daily,”

said Zed co-founder Steve Abraham, adding that,

“We are focused on delivering an exceptional customer experience, and our early usage indicates that the next generation is seeking a credit card experience that avoids expensive fees, supports responsible spending, and provides seamless control over accounts.”

Zed has raised US$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.

Featured image credit: (from left) Zed Co-founders Steve Abraham and Danielle Cojuangco Abraham