- Float, a South African buy and pay layer startup, has raised $11 million from Standard Bank to support the launch of its card-linked instalment platform and accelerate growth over the next four years.
- This development comes less than a year after partnering with Samsung to offer South African consumers flexible and responsible online shopping options.
- According to Maul Masson, Float CFO, the partnership will help the startup strengthen its market position while allowing it to "deliver even greater value" to its customers.
Alex Forsyth Thompson, CEO, founded Float in November 2021 to promote credit card usage while assisting merchants in increasing sales.
Shoppers can use the startup to buy now and divide their payments into up to 24 monthly instalments, with no interest or fees, using the available limits on their existing Visa or Mastercard credit cards.
Float competes with other BNPL platforms, including 4months, HappyPay, PayFlex, and PayJustNow.
Float has already worked with nearly seven million preapproved credit cards in South Africa, and many brands, including iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart, have adopted it.
Thompson stated that Standard Bank's support comes as the startup nears a critical stage of growth, emphasising the importance of fueling the startup as it scales up.
Standard Bank's investment in the startup indicates that Float aligns with the bank's strategy of fostering long-term growth and supporting fintech businesses that promote financial inclusion and digital transformation throughout Africa.
It offered a solution that fits Float’s needs, fueling its growth plans and empowering its management team with access to growth capital.
In recent times, buy now, pay later has grown significantly in South Africa. KenResearch, a market research firm, reports that South Africa's BNPL market grew at a cumulative annual growth rate (CAGR) of 64% between 2019 and 2022. It predicted a CAGR of 35% from 2022 to 2027.
