Float, South Africa’s BNPL startup secures $11 million to launch card-linked installment platform. Float, a startup based in South Africa, has secured $11 million in funding from Standard Bank.
This investment aims to assist Float in launching its card-linked installment platform and fuel its growth over the next four years.
Float Secures $11 Million
Less than a year after teaming up with Samsung to offer flexible online shopping options in South Africa, Float, a startup, has secured $11 million from Standard Bank. This funding will support the launch of its card-linked instalment platform and drive growth over the next four years.
Float’s CFO, Maul Masson, believes this partnership will not only enhance the startup’s market position but also deliver greater value to its customers. Founded by CEO Alex Forsyth Thompson in November 2021, Float aims to promote credit card usage and help merchants increase sales.
How Float Works
Customers can use Float to make purchases and split payments into up to 24 monthly instalments without interest or fees, utilizing the available limits on their Visa or Mastercard credit cards. Float competes with other buy now, pay later (BNPL) platforms like 4months, HappyPay, PayFlex, and PayJustNow.
Already, Float has collaborated with nearly seven million preapproved credit cards in South Africa. Brands like iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart have embraced its services.
Standard Bank’s Backing For Float
According to Thompson, Standard Bank’s backing comes at a crucial growth stage for Float, underscoring the importance of supporting the startup as it scales up. This investment aligns with Standard Bank’s strategy of promoting long-term growth and backing fintech businesses that drive financial inclusion and digital transformation across Africa.
The Significant Growth of the Buy Now, Pay Later Sector in South Africa
The significant growth of the buy now, pay later sector in South Africa is evident. KenResearch reports that the country’s BNPL market expanded at a rapid pace, with a cumulative annual growth rate (CAGR) of 64% between 2019 and 2022. Projections suggest a CAGR of 35% from 2022 to 2027.
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