Standard Bank has announced its provision of a growth facility to Float Technologies Proprietary Limited (Float). As the mandated lead arranger and sole funder, Standard Bank has provided a ZAR200m facility to Float, which will be used to facilitate the rollout of its card-linked instalment platform, supporting its accelerated growth plans over the next four years.
Float is a new payment method that encourages responsible credit card usage and, at the same time, helps merchants to grow their sales. The startup’s proprietary technology lets shoppers buy now and split their payments over up to 24 interest-free, fee-free monthly instalments using the available limit on their existing Visa or Mastercard credit card. As Float already works with almost 7 million preapproved credit cards in South Africa alone, there is no sign-up, registration or credit check process for consumers.
Float currently has a well-established merchant base, which it expects to increase exponentially over the short-to-medium term, with the Standard Bank growth facility playing an important role in the company’s ability to do so. The loan has been structured as a revolving credit facility, ensuring long-term security and flexibility of funding for Float moving forward.
The partnership with Standard Bank will support in bolstering our market position, enabling us to deliver even greater value to our customers. As we navigate through this exciting phase of accelerated growth, our focus remains on maintaining financial discipline and driving sustainable profitability.
Paul Masson, CFO, Float
To support this expansion, an innovative funding structure needed to be developed that allows Float access to capital to accelerate its growth plans and the ability to scale to reach more merchants and consumers with its responsible spending solution. This is the first time we have provided funding to a buy now, pay later (BNPL) company, with the structure of the facility also the first of its kind within Standard Bank. This loan also demonstrates Standard Bank’s belief in Float’s innovative model, it’s management team and shareholders.
In achieving this first for Standard Bank, the deal required significant collaboration within the Corporate and Investment Banking division across the Leveraged Finance, Investment Banking Credit, Coverage, Investment Banking Legal, Transactional Banking, and Global Markets teams. The close cooperation ensured Float’s business model was well understood, despite being a new business segment for the bank, resulting in a best-in-class solution being delivered to the client.
Partnering with Standard Bank is a major milestone for our business and is a huge vote of confidence in the uniqueness of our model, its value to the payments ecosystem, and the future prospects of our team and business.
Alex Forsyth Thompson, Founder and CEO, Float
Since its launch in November 2021, Float has been adopted by hundreds of merchants including household names like iStore, Samsung, The Pro Shop, CycleLab, Dial-a-Bed, Cape Union Mart and many more.
We believe that credit cards are still the most powerful cashflow tool available to consumers. 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%.
Alex Forsyth Thompson, Founder and CEO, Float
Float aligns with Standard Bank’s strategy of driving sustainable growth and supporting fintech businesses which promote financial inclusion and digital transformation across Africa. Assisting innovative, high-growth businesses is a key component in achieving sustainable growth across the African technology, media, and telecom (TMT) landscape. This transaction further adds to Standard Bank’s rapidly growing fintech vertical within the TMT sector.
