Product of the Day
SA fintech Float takes split payments to UK
Shoppers can spread purchases over as many as 24 interest- and fee-free monthly payments without applying for new credit.
Float, a card-linked instalment platform founded in South Africa, has expanded into the United Kingdom. The launch has been supported by the UK Government’s Global Entrepreneur Programme, which brings high-growth international businesses into the UK market.
Float lets shoppers split any purchase into up to 24 interest- and fee-free monthly instalments, using the credit they already have on their existing Visa or Mastercard credit card. There is no new credit issued, no additional sign-up process, and no app download required. The shopper gets more time to pay with their credit card, and keeps their regular loyalty and rewards points.
Based on Float’s global merchant data, the fintech increases average order values by about 134% across participating merchants, while also improving conversion rates and attracting higher-spending shoppers.
“South Africa’s 5.5-million credit cardholders carry around R200-billion in outstanding balances, yet there is over R125-billion sitting unutilised on their cards,” says Alex Forsyth-Thompson, Float founder and CEO.
“Because there’s a 30-55-day repayment window before interest applies, many shoppers routinely downsize baskets, defer purchases, or abandon checkout, not because they lack credit, but because the repayment window forces a trade-off between what they want and what is manageable. These shoppers don’t need more credit because their credit cards solve that. They just need more time.”
According to Float, UK consumers hold about 55-million credit cards with an estimated £250-billion in unused available credit. Nearly half of all credit card accounts incur interest during a given month, which suggests that repayment periods, rather than access to credit, constrain many consumers.
“The issue in the UK is on a far bigger scale, so it presents an enormous opportunity for us to expand and add the same value in a new market,” says Forsyth-Thompson. “We are already seeing success: merchant take-up has been significantly faster than our SA launch a few years ago, and we were recently shortlisted in the UK for the PAY360 Award for Best Consumer Payments Product and the Ecommerce Awards’ Best eCommerce Payment Solution.”
Float launched in SA in 2021 and has since become available at more than 2,200 stores across sectors including consumer electronics, furniture, sport, automotive, fashion and healthcare. Participating retailers include Samsung, iStore, The North Face, Cycle Lab and Tiger Wheel & Tyre.
