Float launches card-linked instalment payments in the UK

Float has launched its card-linked instalment payments platform in the UK, saying the service can work with more than 55mn UK credit cards. The fintech said merchants can offer shoppers as many as 12 monthly instalments without interest or fees, using credit already available on the customer’s existing card rather than creating a new loan.

The product enters a UK payments market where point-of-sale finance and buy now, pay later providers have expanded rapidly, while regulators and banks have focused on affordability, consumer protection and the treatment of short-term credit. Float’s model differs from conventional BNPL in that it does not provide a separate credit facility at checkout, according to the company.

At checkout, a shopper selects an instalment option powered by Float, chooses a plan and pays with an existing Visa or Mastercard credit card. Float said there is no separate sign-up process or app download. The purchase remains inside the shopper’s existing card limit, which means the cardholder keeps card protections and benefits such as rewards or air miles, according to the company.

Float said the service is aimed at merchants selling higher-ticket goods and services, including consumer electronics, furniture and home products, sports and leisure, automotive, luxury fashion, lifestyle and healthcare. Across its current merchant base, the company said its technology has produced a 134% increase in average order value, with an average order above £500.

The company has operated in South Africa since 2021 and said it is used by more than 2,000 stores there. Brands cited by Float as part of its South African merchant base include Samsung, Trek, Reebok, The North Face and Diesel.

Alex Forsyth-Thompson, Float’s founder and chief executive, said UK merchants are seeking larger baskets and higher conversion rates without discounting, extending new loans or adding checkout friction. He said Float gives shoppers longer payment terms while using credit they already have.

Float also pointed to the scale of unused card capacity in the UK. The company said consumers have more than £70bn in credit card balances, while more than £250bn of credit card limits remains unused.

Forsyth-Thompson said many UK consumers “don’t need more credit” and instead need more time to pay. Float said standard credit card users typically have 30 to 55 days before interest applies, which can make a larger purchase harder to manage within one billing cycle.

The commercial proposition for merchants rests on converting existing cardholders who have sufficient available credit but may prefer to spread repayment. For banks and card issuers, Float said the model supports use of existing credit lines rather than shifting customers into a separate point-of-sale finance product.

The UK launch extends Float’s card-linked instalment approach beyond South Africa and places it in competition with other checkout finance options. The company did not disclose UK merchant names, pricing for merchants or the timing of any further international expansion.

This story draws on original reporting from Finextra Research.