South Africa BNPL Startup Float Secures a $11 million Fund to Launch Its Card Linked Instalment Platform
Float, a startup based in South Africa, specializing in buy and pay later services (BNPL), has secured $11 million in funding from Standard Bank.
This funding according to the company will be used to accelerate the rollout of its card-linked installment platform, which allows shoppers to split purchases into manageable installments without additional fees or interest.
According to Maul Masson, Float CFO, the partnership will help the startup strengthen its market position while allowing it to “deliver even greater value” to its customers.
He said,
“The partnership with Standard Bank will support in bolstering our market position, enabling us to deliver even greater value to our customers. As we navigate this phase of accelerated growth, our focus remains on maintaining financial discipline and driving sustainable profitability.”
Also commenting, Float founder and CEO Alex Forsyth Thompson said,
“Partnering with Standard Bank is a major milestone for our business and is a huge vote of confidence in our model, its value to the payments ecosystem, and the future prospects of our team and business. The support from Standard Bank comes at a time when we’re approaching an inflection point in our growth and will be pivotal in fueling our business as we scale”.
Launched in November 2021, Float encourages responsible credit card usage and, at the same time, helps merchants to grow their sales. Since its launch, the startup has been adopted by hundreds of merchants including household names like iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart and many more.
The startup’s proprietary technology lets shoppers buy now and split their payments over up to 24 interest-free, fee-free monthly installments using the available limit on their existing Visa or Mastercard credit card.
Notably, Float already works with almost seven million pre-approved credit cards in South Africa, and there is no sign-up, registration or credit check process for consumers. It now expects to increase its well-established merchant base exponentially after securing the US$11 million debt facility from Standard Bank.
With this new funding, Float expects to significantly expand its merchant network in the coming years.
