As Black Friday weekend approaches, Float, Africa’s first card-linked instalment platform, is poised for a record-breaking year. With over 1,000 new stores added to its platform in 2023, the company anticipates a 100% increase in the number of transactions processed compared to last year.
In 2022, Black Friday weekend accounted for 21% of Float’s November transaction values, with a remarkable 140% increase compared to the preceding month.
“We’re expecting similar performance this year in terms of the transaction uplift over Black Friday,” said Float CEO Alex Forsyth-Thompson.
“However, the difference is that our platform now has a broader network of merchants across a wider range of categories. As a result, we’ve seen repeat usage of our product go up by 229%.”
Expanding categories and new trends
Electronics and appliances dominated Black Friday sales in 2023, comprising more than 50% of transactions. Other popular categories included leisure sports and hobbies, furniture, homeware, and home improvement. This year, Float expects a significant shift, with fashion and footwear playing a much larger role.
New partnerships with brands such as Cape Union Mart, Superdry, Diesel, and Reebok are driving this trend.
“Whilst Float’s primary use case is for big-ticket purchases like laptops, bicycles, tyres, or sofas, we expect to see around 20% of our transactions come from our fashion and footwear brands over the Black Friday period,” said Forsyth-Thompson.
“There are now many more of these stores on our platform since 2023, but also because this category traditionally drives strong discounts and promotions over the period.”
Supporting shoppers through the Festive Season
The early December payday, often seen as a bonus, presents challenges for shoppers who must stretch their salaries over a longer period. This makes Float’s offering particularly appealing.
“Offering interest-free instalments gives shoppers the flexibility to spread their payments over several paycheques – in Float’s case, this is an average of four to six paycheques,” explained Forsyth-Thompson.
“And because Float’s card-linked instalment model works exclusively within the available limit on existing credit cards, consumers do not have to take out any new loans or lines of credit. The solution is designed to help with cash flow management and to promote truly responsible credit-based spending – especially during the festive season.”
A growing preference for instalments
Forsyth-Thompson predicts continued growth in e-commerce during Black Friday weekend, driven by rising living costs and increased consumer awareness of instalment options.
“We expect to see an increased shift towards instalment options like Float – especially from shoppers that had not previously considered this. The ability to split purchases into more manageable, monthly payments is a critical tool for merchants to win in this economic environment.”
Responsible credit usage
Float’s card-linked instalment platform distinguishes itself from traditional Buy Now, Pay Later (BNPL) models by leveraging existing credit card limits. Unlike conventional BNPL services that issue new credit, Float helps shoppers split purchases into interest-free instalments of up to 24 months.
By tapping into South Africa’s 6.5 million credit card users, Float expands the BNPL market while promoting responsible spending. This approach positions Float as a valuable tool for shoppers and merchants alike, particularly during the high-spending Black Friday and festive seasons.
