Float, a South African fintech company, has recently secured $11 million in funding from Standard Bank, a major financial institution in the region. This funding injection is earmarked to support Float’s innovative card-linked instalment platform, aimed at promoting responsible credit card usage while facilitating smoother transactions for consumers and bolstering sales for merchants.
The essence of Float’s platform lies in its proprietary technology, which enables shoppers to make purchases and split payments over a period of up to 24 interest-free, fee-free monthly instalments, utilizing the available credit limit on their existing Visa or Mastercard credit cards. This model not only encourages responsible financial behavior but also enhances purchasing power for consumers.
One of Float’s key strengths is its extensive reach, with almost seven million preapproved credit cards already integrated into its system. Moreover, the platform boasts a streamlined user experience, as there’s no need for sign-up, registration, or credit checks for consumers, making it accessible and user-friendly.
Float has also garnered significant traction among merchants, counting hundreds of businesses among its clientele, including prominent names like iStore, Samsung, and The Pro Shop. The platform’s impact on merchant sales has been substantial, with conversion rates seeing a noticeable uptick and average order values experiencing a remarkable 134% increase, according to a recent case study.
The funding from Standard Bank is structured as a revolving credit facility, ensuring long-term stability and flexibility for Float’s operations. This partnership is viewed as a significant milestone for Float, providing not only financial support but also validation of its business model and growth potential within the payments ecosystem.
Float’s leadership team, including CFO Paul Masson and founder/CEO Alex Forsyth Thompson, expressed gratitude for the support from Standard Bank, highlighting its importance in fueling the company’s growth trajectory. Looking ahead, Float aims to capitalize on this funding to further expand its merchant base, forge new partnerships, and solidify its position as a leading player in the South African fintech landscape.
