South African fintech startup Float has secured $11 million in funding from Standard Bank to bolster the launch of its card-linked installment platform and propel its growth trajectory over the next four years. This significant milestone is aimed at providing South African consumers with flexible and responsible online shopping options.
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Float’s platform enables shoppers to make purchases and split their payments into up to 24 monthly instalments, interest-free and fee-free, leveraging the available limits on their Visa or Mastercard credit cards. In a competitive landscape, Float competes with other Buy Now, Pay Later (BNPL) platforms like 4months, HappyPay, PayFlex, and PayJustNow.
With nearly seven million preapproved credit cards in South Africa already onboarded, Float has garnered partnerships with prominent brands such as iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart.
Standard Bank’s investment underscores its commitment to fostering long-term growth and supporting fintech enterprises that drive financial inclusion and digital transformation across Africa. This strategic partnership is tailored to meet Float’s growth objectives and equip its management team with the necessary resources to scale effectively.
The rise of Buy Now, Pay Later solutions in South Africa reflects a broader trend towards consumer financial flexibility. Market research firm KenResearch reports significant growth in South Africa’s BNPL market, with a cumulative annual growth rate (CAGR) of 64% from 2019 to 2022. Projections suggest a continued CAGR of 35% from 2022 to 2027, indicating sustained momentum in the sector.
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