By offering Float Technologies Proprietary Limited (Float) a growth credit valued at ZAR200 million (US$24 million), Standard Bank hopes to strengthen Float.

A new fintech company called Float lets users divide credit card bills into installments. The goal of the new payment option is to boost sales for retailers while also promoting responsible credit card use.

Because of its innovative nature, Standard Bank is lending money to a "buy now, pay later" (BNPL) company for the first time. Over the course of the next four years, the bank will assist Float in expediting its development goals by utilizing the funds for the launch of Africa's first card-linked installment platform.

The first card-linked installment platform in Africa
Float, which debuted in South Africa in 2021, already has a strong merchant base, which it hopes to grow in the near future. Some companies have already embraced the platform, including CycleLab, iStore, and Samsung.

Customers can purchase a product through Float's technology and spread out their payments over up to 24 interest-free, fee-free monthly installments. Using the allowed limit on their current Visa or Mastercard credit card, they can accomplish this.

In the end, Standard Bank's growth facility funding will make it possible for the firm to grow more profitably.

With around seven million pre-approved credit cards in use in South Africa alone, Float is a hit since users don't have to register, sign up, or go through a credit check procedure.

The loan from Standard Bank is set up as a revolving credit facility, which will guarantee stability and adaptability in terms of funding Float in the long run. According to Float CFO Paul Masson, the cooperation also intends to strengthen Standard Bank's position in the market.

He claims, "It will allow us to give our customers even more value." "Our focus stays on upholding financial discipline and fostering sustainable profitability as we navigate through this exciting phase of accelerated growth."

Fintech powered by clever finance arrangements

As this is Standard Bank's first collaboration with a BNPL business, the bank is eager to show that it supports Float's cutting-edge business strategy. A creative funding arrangement from Standard Bank is required to support Float's growth, giving the business access to capital and scalability to reach additional retailers and customers.

With 20 active in-country operations in sub-Saharan Africa and more than 15 million active clients, Standard Bank is ideally positioned to support Float in implementing its plan. The company is in line with Standard Bank's objective of fostering sustainable growth and assisting fintech companies that aim to advance digital transformation and financial inclusion throughout Africa.

As Float's transactional banking partner, the organization has declared its commitment to becoming the company's go-to partner. Better comprehension of Float's particular business needs is made possible by such a customized solution, which ultimately allows them to grow even more.

According to Alex Forsyth Thompson, founder and CEO of Float, "credit cards are still the most powerful cashflow tool available to consumers." In addition to helping customers use their credit cards as responsibly as possible, our solution is made to increase volume for card issuers.

"This means that merchants can immediately reach a valuable audience, increasing conversions and average order values by 134%."