Philippine neobank Zed introduces pioneering “no-fee” credit card, securing $6m in funding
In a significant move towards democratising financial services in the Philippines, Zed, a credit-led neobank, has launched the country’s first “no-fee” credit card, according to a report from FinTech News. This innovative offering eliminates several common charges, including foreign transaction fees, interest, and annual fees, marking a potential shift to more accessible financial services for the financially underserved in the region.
The introduction of this credit card has sparked considerable interest, with Zed announcing over twenty thousand sign-ups within just two weeks of launching an early access programme.
Behind this groundbreaking initiative are founders Danielle Cojuangco Abraham and Steve Abraham, both of whom boast impressive backgrounds as Y Combinator alumni and engineers from Stanford. Their venture has recently raised US$6m in funding, with notable leadership from Peter Thiel’s Valar Ventures, a testament to the innovative potential of Zed’s approach to banking.
Zed’s mission extends beyond the introduction of a “no-fee” credit card; it aims to overhaul the credit card experience in Southeast Asia fundamentally. With its operations anchored 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. Amid 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.
Reflecting on Zed’s launch, Danielle Cojuangco Abraham expressed personal significance, 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.”
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