Float, South Africa’s first card-linked instalment platform, has raised $2.6 million (R46 million) in new funding to scale operations, strengthen its technology, and accelerate international expansion.
The round was co-led by Invenfin and SAAD Investment Holdings, with participation from Platform Investment Partners and newcomer Lighthouse Venture Partners, which also advised on the deal. This funding builds on Float’s earlier success, including an $11 million facility from Standard Bank in 2023.
How Float Works
Founded in 2021, Float allows shoppers to split purchases on their existing credit cards into interest-free, fee-free instalments. Unlike traditional Buy Now, Pay Later (BNPL) providers, Float doesn’t issue new credit. Instead, it leverages existing card infrastructure, offering consumers more flexibility without additional debt exposure.
Float already serves over 2,000 merchants, processing thousands of high-value transactions monthly. The company reports an average order value of ZAR10,000 ($570), with merchants noting order sizes growing more than 130% since adopting Float.
Investor Confidence and Market Positioning
The latest funding reflects strong investor confidence in Float’s differentiated model. By avoiding the debt risks often associated with BNPL, the platform positions itself as a responsible fintech solution in a country where credit card penetration is among the highest in Africa.
Partnerships with Peach Payments and Adumo provide omni-channel reach across both e-commerce and brick-and-mortar stores, boosting scalability. This positions Float to capture growing demand for alternative payment methods in South Africa and beyond.
BNPL Landscape and Expansion Strategy
Globally, BNPL providers have come under scrutiny for fueling unsustainable consumer debt, particularly in markets like the U.S. and U.K. Float’s approach—anchored in existing credit card usage—offers a different framework that could prove more sustainable as it eyes international expansion.
With this new capital, Float aims to deepen its South African presence, refine its technology, and prepare for expansion into new African and international markets. By enabling larger order values and improving merchant loyalty, the company is well positioned to shape the future of Africa’s digital payments ecosystem.
