Alex Forsyth-Thompson, founder and CEO of Float.
Float, a card-linked instalment platform, is collaborating with payment solutions provider, Adumo, to offer consumers the option to pay in store over four interest-free monthly instalments using the available limit on their credit card.
According to Float, the alliance enables an improved shopping experience at a range of mainstream retail outlets using Adumo payment devices by working with retailers such as Safari Outdoor, Verimark, Cellucity, TOMS, Vision Optometrists and Tyremart.
Float adds that card-linked instalments differ from the regular buy now pay later (BNPL) model as it does not issue new credit to consumers. Instead, the company helps consumers use their existing credit more innovatively and responsibly. The service is compatible with any Visa or Mastercard issued credit card, allowing Float merchants to accept instalment payments from around 7 million credit cards in SA.
Shoppers use Float on an Adumo terminal by selecting it as a payment option at checkout, verify their identity with a one-time pin, pay 25% upfront on their credit card, and the remaining balance is automatically split into three monthly instalments. Consumers pay over time while merchants receive the full payment upfront.
Furthermore, the fintech says the partnership creates significant value for retailers by offering shopper payment flexibility while driving larger purchases. With average order values 10 times larger than regular BNPL and access to over 5 million pre-approved credit card holders, merchants typically see a 134% increase in average transaction value and higher conversion rates.
Commenting on the partnership, Alex Forsyth-Thompson, founder and CEO of Float, says: “Float’s card-linked instalment model is fast becoming a pervasive payment method for shoppers across South Africa. This partnership with Adumo will further our footprint and ensure that millions of credit card holders can split their purchases over several months, without incurring any added interest.”
