Float CEO Alex Forsyth-Thompson.
Financial services firm Standard Bank has provided an $11-million facility to financial technology (fintech) startup company Float which will use the funds for the ongoing rollout of its card-linked instalment platform, supporting its accelerated growth plans over the next four years.
Float is a new payment method that encourages responsible credit card use while, simultaneously, helping merchants to grow their sales.
The startup’s proprietary technology allows shoppers to ‘buy now’ and split their payments over up to 24 interest- and fee-free monthly instalments using the available limit on their existing Visa or Mastercard credit card.
Float already works with almost seven-million preapproved credit cards in South Africa and there is no sign-up, registration or credit check process for consumers.
The loan has been structured as a revolving credit facility, thereby ensuring long-term security and flexibility of funding for Float.
"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,” says Float CFO Paul Masson.
The company expresses that Standard Bank provided a tailored solution that is best suited to Float's requirements, enabling the company’s growth plans and empowering its management team through access to growth capital.
"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 fuelling our business as we scale,” says Float CEO Alex Forsyth-Thompson.
Since its launch in November 2021, Float has been adopted by various merchants and Forsyth-Thompson says Float has had a significant impact on participating merchants' sales.
"South African credit consumers reward merchants that offer them flexible and responsible payment options with their business and their loyalty. Float gives them exactly that and the result has been a drastic increase in conversion rates and, based on a recent case study across hundreds of our merchants, a 134% increase in our merchants’ average order values.
“We have new merchants and partnerships in the pipeline and this funding ensures that we can continue to scale for the next few years,” he says.
Float says it aligns with Standard Bank's strategy of driving sustainable growth and supporting fintech businesses that promote financial inclusion and digital transformation across Africa.