Standard Bank, a leading financial institution, has announced a significant investment of $11 million in Float, a burgeoning Johannesburg fintech company. This collaborative effort signifies a strategic alliance designed to propel Float's innovative card-linked installment platform to new heights over the next four years.
Float's disruptive technology empowers consumers to leverage the spending power of their existing credit cards, enabling them to distribute purchase costs over manageable, interest-free installments spanning up to 24 months. This fosters responsible credit card utilization and equips merchants with a powerful tool to amplify their sales conversions.
The meticulously crafted funding package, structured as a revolving credit facility, furnishes Float with long-term financial stability and the adaptability required to execute its ambitious growth strategies.
"This partnership with Standard Bank serves to solidify our position within the market, empowering us to deliver unparalleled value to our growing customer base," expressed Paul Masson, Float's Chief Financial Officer. "As we navigate this exhilarating period of accelerated growth, unwavering financial discipline and achieving sustainable profitability remain paramount to our continued success."
Recognizing the immense potential within Float's business model, Standard Bank meticulously crafted a financial solution tailored to address their specific requirements. This investment serves not only as a significant capital injection to fuel Float's expansion but also as a resounding vote of confidence in their management team and their vision for the future.
"Our alliance with Standard Bank represents a pivotal milestone for Float," declared Alex Forsyth-Thompson, the company's Founder and CEO. "This investment stands as a powerful testament of trust in our unique business model, its value proposition within the payments ecosystem, and the remarkable potential of our team. The unwavering support from Standard Bank arrives at a critical juncture in our growth trajectory and will play a pivotal role in propelling our business forward as we scale to even greater heights."
Since its inception in November 2021, Float has garnered remarkable traction within the South African market, with hundreds of merchants embracing their innovative installment solutions. Renowned brands such as iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, and Cape Union Mart are examples of the prominent names that have incorporated Float's technology.
"South African consumers who utilize credit cards demonstrably favor merchants who provide flexible and responsible payment options," explained Forsyth-Thompson, emphasizing the demonstrably positive impact on their partnered merchants. "Float fulfills this essential need, resulting in a dramatic surge in conversion rates and a staggering 134% increase in average order value for our merchants, as evidenced by a recent comprehensive case study. With a robust pipeline of new partnerships and merchants on the horizon, this funding guarantees our ability to continue scaling our operations for the foreseeable future."
Standard Bank's investment in Float underscores their unwavering commitment to fostering sustainable growth within the burgeoning fintech sector. They actively seek to empower businesses that champion financial inclusion and spearhead the digital transformation revolution across the African continent.
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