Standard Bank has granted US $11 million to South African fintech startup Float in order to support the company’s accelerated growth plans over the next four years and enable the rollout of its card-linked installments platform.
Launched in November 2021, Float assists retailers in increasing sales while also promoting responsible credit card use. Thanks to the startup’s patented technology, customers can purchase now and use the available credit limit on their current Visa or Mastercard credit card to spread out their payments over up to 24 interest-free, fee-free monthly installments.
There is no sign-up, registration, or credit check process for customers, and the startup already works with nearly seven million pre-approved credit cards in South Africa. With the US$11 million debt facility secured from Standard Bank, it now anticipates exponential growth in its existing merchant base.
“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,” said Float founder and CEO Alex Forsyth Thompson.
“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 percent 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 will have long-term security and flexibility in funding thanks to the loan’s revolving credit structure, which is modelled after one that is being offered to Planet42, a startup that offers car subscriptions.
