Credit card-linked instalments fintech Float goes live in the UK

A new financing tool called Float has launched in the UK, offering retailers a middle ground between traditional credit cards and Buy Now, Pay Later (BNPL). For merchants, this means you can offer interest-free monthly installments to any customer who already holds a credit card. Unlike standard BNPL services, there are no new credit checks or lengthy sign-up forms for the shopper. It uses the customer’s existing credit limit to secure the purchase. For your business, this reduces the friction of long applications at the point of sale. Because the system works with over 55 million existing UK credit cards, your potential pool of users is immediately massive. You get paid upfront, while the customer pays in up to 12 monthly installments. This model is particularly attractive for retailers selling higher-ticket items who want to increase conversion rates without the regulatory hurdles often associated with opening new lines of credit for customers. It provides the security of a credit card transaction with the flexibility of a payment plan.

Source: Finextra — Lending

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