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Float, a South African startup specializing in buy-now-pay-later (BNPL) services, has successfully secured $11 million in funding from Standard Bank.
The funding will be utilized to accelerate the rollout of Float’s card-linked installment platform, allowing shoppers to split purchases into manageable installments without incurring additional fees or interest.
According to Maul Masson, Float’s CFO, the partnership with Standard Bank will reinforce the startup’s market position and enable it to provide enhanced value to its customers.
Masson stated, “The partnership with Standard Bank will support 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, expressed his excitement about the partnership with Standard Bank, describing it as a significant milestone for the business. He emphasized the confidence in Float’s model, its value to the payments ecosystem, and the future prospects of the team and business.
Thompson said, “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.”
Float, launched in November 2021, promotes responsible credit card usage while helping merchants boost their sales. Since its inception, Float has been adopted by hundreds of merchants, including well-known brands like iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart.
The startup’s proprietary technology enables shoppers to make purchases and split payments over up to 24 interest-free, fee-free monthly installments using the available limit on their existing Visa or Mastercard credit card.
Notably, Float already collaborates with almost seven million pre-approved credit cards in South Africa, with no sign-up, registration, or credit check process required for consumers. With the $11 million debt facility from Standard Bank, Float anticipates a significant expansion of its well-established merchant base.
With the infusion of new funding, Float aims to substantially grow its merchant network in the coming years, further solidifying its position in the BNPL market.
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