Float, a South African purchase and pay layer firmly, has secured $11 million from Standard Bank to fund the launch of its card-linked instalment platform and accelerate expansion over the next four years.
This development comes less than a year after partnering with Samsung to provide South Africans with flexible and responsible online shopping options.
According to Float’s CFO, Maul Masson, the agreement will help the business enhance its market position while allowing it to “deliver even greater value” to its clients. The CEO, Alex Forsyth Thompson, created Float in November 2021 to encourage credit card use while supporting merchants in improving sales.
Customers can utilize the startup to buy now and divide their payments into up to 24 monthly instalments with no interest or fees, based on the available limitations on their existing Visa or MasterCard credit cards.
Float competes with other BNPL systems like 4months, HappyPay, PayFlex, and PayJustNow. Float has now worked with approximately seven million preapproved credit cards in South Africa, and it has been embraced by numerous brands such as iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart.
Thompson added that Standard Bank’s support comes as the firm approaches a vital growth stage, emphasizing the need to sustain the startup as it grows.
Standard Bank’s investment in the firm shows that Float is consistent with the bank’s aim of nurturing long-term growth and supporting fintech businesses that promote financial inclusion and digital transformation across Africa.
It provided a solution that met Float’s requirements, driving its expansion aspirations and providing its management team with access to growth funding.
South Africa has seen a considerable increase in buy now, pay later transactions. According to Ken Research, South Africa’s BNPL market grew at a 64% CAGR between 2019 and 2022. It expected a 35% CAGR from 2022 to 2027.
