Digital bank Zed has a new card up its sleeve

Zed, a credit-led digital bank, recently secured its Certificate of Authority to Operate as a standalone credit card issuer from the central bank of Philippines, the Bangko Sentral ng Pilipinas (BSP). This significant milestone positions Zed as the first Philippine neobank to offer credit cards independently.

Behind the Zed

This digital bank was co-founded by Silicon Valley engineers Danielle Cojuangco Abraham and Steve Abraham. 

The Abrahams are also Y Combinator alumni. Y Combinator is a technology start-up accelerator that runs three month summer and winter programs for start-up founders to refine their ideas. This accelerator has helped well-known companies like Airbnb, Twitch, and Dropbox get started.

The card up Zed’s sleeve

The product of these Y Combinator alumni is the Zed Card, a Mastercard Titanium Credit Card. This card does not have any fees, such as annual fees or foreign transaction fees; and no revolving interest, meaning that cardholders can get up to 31 days of credit without revolving their balance. 

In other words, unpaid credit card debt does not carry over from one billing cycle to the next — instead, cardholders will have up to 31 days to pay off any purchases before Zed starts to charge interest.

Another notable feature of the Zed Card is its smart credit limits. Instead of using credit scores to calculate the user’s credit limit, the credit company analyses data, including the user's current and potential income. This feature specifically targets young professionals, who may not have an extensive credit history, to access more credit and build their credit profiles.

By invite only

Now that the Zed Card has completed it’s BSP-sanctioned pilot, the credit card is opening to the public by an invite only basis. Since its waitlist was launched in March, it has received nearly 40,000 sign-ups. Those on the waitlist will receive invitations to apply for a Zed Card over the next few months.

“We’re overwhelmed by the excitement for Zed and the number of signups we’ve received,” says Danielle Cojuangco Abraham, Zed co-founder and CEO. “Given the significant demand, it will take some time for us to open up spots for all 40,000 individuals on the waitlist. Rest assured, we’re already sending out invitations and will get to everyone that’s signed up.”

According to the other Zed co-founder, Steve Abraham, reception has been positive: “We’ve seen really strong engagement among our early cardholders, with transaction volume growing 100% month over month and 48% of cardholders transacting daily.”

Those interested in the card can join the waitlist on the start-up's website.