Fintech Startup Float Leverages BNPL to Help Lower Need for Credit
- Buy now, pay later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them over time, usually with no interest.
- African Startup, Float, allows credit card holders to use their existing credit to split purchases into flexible, interest-free monthly installments.
- The average order value on Float is around R10,000, almost ten times the average reported by regular BNPLs.
BNPL services like Float offer a convenient and flexible way for consumers to make purchases and pay for them over time without incurring interest. This model is particularly well-suited for big-ticket purchases and has seen success in categories such as electronics, furniture, and appliances. However, it is important for consumers to exercise caution and avoid accumulating multiple BNPL purchases, as small payments can quickly add up and become a financial burden.
