Standard Bank has provided an $11 million facility to fintech Float, which will facilitate the 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 usage and, at the same time, helps merchants to grow their sales. The startup’s proprietary technology lets shoppers buy now and split their payments over up to 24 interest-free, 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.
Float has a well-established merchant base, which it expects to increase exponentially. The loan has been structured as a revolving credit facility, ensuring long-term security and flexibility of funding for Float.
Float CFO, Paul Masson comments, "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."
Standard Bank provided a tailored solution that is best suited to Float's requirements, enabling Float's growth plans and empowering its management team through access to growth capital.
Float founder and CEO, Alex Forsyth Thompson added, "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.”
Since its launch in November 2021, Float 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.
Forsyth-Thompson said that Float has had a significant impact on their 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 merchant’s 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."
Float aligns with Standard Bank's strategy of driving sustainable growth and supporting fintech businesses that promote financial inclusion and digital transformation across Africa.