Float has recently secured a significant financial boost after the firm was granted an $11 million facility by Standard Bank.
This funding is set to facilitate the rollout of Float’s unique card-linked instalment platform, supporting its accelerated growth plans over the next four years.
The startup stands out in the fintech space for its proprietary technology, which allows shoppers to buy now and split their payments into up to 24 interest-free, fee-free monthly instalments. This service utilises the available limit on consumers’ existing Visa or Mastercard credit cards. Currently, Float works with almost seven million preapproved credit cards in South Africa, offering a seamless experience with no need for sign-up, registration, or credit checks for consumers.
This platform has significantly benefitted both consumers and merchants by encouraging responsible credit card usage while boosting sales for merchants. Float has established a strong merchant base, which it expects to grow exponentially. The funding from Standard Bank has been structured as a revolving credit facility, providing Float with long-term security and flexibility.
Paul Masson, Float’s CFO, expressed his enthusiasm about the partnership with Standard Bank, highlighting its role in bolstering Float’s market position and delivering greater value to customers. “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.”
Alex Forsyth Thompson, Float’s founder and CEO, also shared his excitement about the collaboration, considering it a major milestone for Float. “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 well-known brands across South Africa. The platform has proven to be a game-changer for merchants, offering flexible and responsible payment options that significantly increase conversion rates and merchant average order values.
Standard Bank’s support not only underlines its commitment to driving sustainable growth and promoting financial inclusion but also aligns with Float’s mission to revolutionize the payments ecosystem in Africa.
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