Africa Fintech: Standard Bank launches Growth Plan for Float

Standard Bank seeks to empower Float Technologies Proprietary Limited (Float) by providing a growth facility worth ZAR200m (US$24m).

Float is a startup fintech business that enables people to split credit card payments into instalments. The new payment method is designed to encourage responsible credit card use and simultaneously help merchants expand their sales.

This is the first time Standard Bank has loaned money to a ‘buy now, pay later’ (BNPL) company, believing in its innovation. With the money being used to roll out Africa’s first card-linked instalment platform, the bank will help Float to accelerate its development plans over the next four years.

Africa's first card-linked instalment platform

Having first launched in 2021 in South Africa, Float already holds a well-established merchant base, which it expects to increase in the near future. The platform has already been adopted by the likes of Samsung, iStore and CycleLab.

Float’s technology allows shoppers to buy a product and split their payments over up to 24 interest-free, fee-free monthly instalments. They can do this by using the available limit on their existing Visa or Mastercard credit card.

The growth facility funded by Standard Bank will ultimately enable the startup to expand more successfully.

Already working with nearly seven million pre-approved credit cards across South Africa alone, Float is being celebrated for there being no need for customers to sign-up, register or complete a credit check process.

Standard Bank’s loan has been structured as a revolving credit facility to ensure long-term security and flexibility, when it comes to funding Float moving forward. The partnership also aims to support Standard Bank’s market position, as Float CFO Paul Masson explains.

“It will enable us to deliver even greater value to our customers,” he says. “As we navigate through this exciting phase of accelerated growth, our focus remains on maintaining financial discipline and driving sustainable profitability.”

Powering fintech with strategic funding structures

With this being the first time Standard Bank has partnered with a BNPL company, the bank is keen to demonstrate its belief in Float’s innovative technology model. To support Float’s expansion, an innovative funding structure from Standard Bank is needed to enable the startup to access capital and scale to reach more merchants and consumers.

With more than 15 million active clients and 20 current in-country operations in sub-Saharan Africa, Standard Bank is well-placed to help deliver Float’s strategy. The startup aligns with Standard Bank’s strategy of working to drive sustainable growth and supporting fintech businesses that seek to promote financial inclusion and digital transformation across Africa.

The organisation has stated that it is committed to establishing itself as Float's key partner, acting as the company’s transactional banking partner. Such a tailored solution enables better understanding of Float’s unique business requirements, which in turn will enable them to expand further.

“We believe that credit cards are still the most powerful cashflow tool available to consumers,” says Alex Forsyth Thompson, Founder and CEO of Float. “Our solution is designed to grow volumes for card issuers and, at the same time, to help consumers use their credit cards in the most responsible way possible. 

“For merchants, this means instantly tapping into a high-value audience – growing conversions and average order values by 134%.”

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