South Africa’s Float Raises $2.6M to Scale Card-Linked Instalments

Key Takeaways

Buy Now, Pay Later (BNPL) models have gained traction globally but often draw criticism for encouraging unsustainable debt. Float differentiates itself by working directly with existing credit cards rather than issuing new credit, positioning its model as more responsible. South Africa has one of the highest credit card penetration rates in Africa, yet affordability pressures and rising interest rates have limited consumer spending power. By linking to credit cards, Float provides flexibility without layering on additional borrowing, while merchants benefit from larger transactions and stronger customer loyalty. Strategic partnerships with Peach Payments and Adumo give it access to omni-channel processing across e-commerce and brick-and-mortar stores, improving scalability. As BNPL faces regulatory scrutiny in markets like the U.S. and U.K., Float’s card-linked approach could become an alternative framework for expansion into African and international markets. The latest funding signals investor confidence in its differentiated model and growth trajectory.