Zed Launches First ‘No-Fee’ Credit Card, Revolutionizing Financial Services in the Philippines

Philippine neobank Zed introduces the first ‘no-fee’ credit card, eliminating charges and fees to make financial services more accessible. With over 20,000 sign-ups within two weeks, Zed has the potential to revolutionize banking in Southeast Asia.

Zed Launches First ‘No-Fee’ Credit Card, Revolutionizing Financial Services in the Philippines

Philippine neobank Zed has made a significant move towards making financial services more accessible in the country by launching the first ‘no-fee’ credit card. This innovative offering eliminates various charges, including foreign transaction fees, interest, and annual fees, potentially benefiting the financially underserved population in the region.

( Credit to: Fintech )

The introduction of this credit card has generated significant interest, with over twenty thousand sign-ups within just two weeks of launching an early access program.

( Credit to: Fintech )

Zed’s founders, Danielle Cojuangco Abraham and Steve Abraham, both Y Combinator alumni and engineers from Stanford, are behind this groundbreaking initiative. The venture recently secured $6 million in funding, with notable support from Peter Thiel’s Valar Ventures, demonstrating the innovative potential of Zed’s banking approach.

Zed’s mission goes beyond introducing a ‘no-fee’ credit card; it aims to fundamentally overhaul the credit card experience in Southeast Asia. With operations based in San Francisco and Manila, Zed is navigating the regulatory landscape, claiming regulation by the Bangko Sentral ng Pilipinas (BSP) and holding a principal membership with Mastercard. In response to inquiries about its regulatory status, Zed confirmed its registration under Zed Philippines, Inc. and its receipt of provisional approval from the BSP for a Non-Bank Credit Card Issuer license, enabling it to launch a pilot credit card program.

Danielle Cojuangco Abraham expressed personal significance in the launch of Zed, stating, ‘Launching Zed is something very personal to me, and I am thrilled to come home after 15 years in Silicon Valley to build a game-changing product for Filipinos.’

Zed’s introduction of a ‘no-fee’ credit card is a significant step towards democratizing financial services in the Philippines. With their innovative approach and impressive funding, Zed has the potential to revolutionize the banking industry in Southeast Asia.