The company links to consumers’ existing credit cards, provides the option of paying in installments without a new line of credit, and offers up to 12 months of installments with no interest or fees, according to the report.
In South Africa, Float offers this option across more than 2,000 shops, per the report.
The company has found that its installment payment options enable merchants to get bigger baskets and more conversions without discounting or offering new loans, Float Founder and CEO Alex Forsyth-Thompson said in the report.
“Millions of U.K. consumers don’t need more credit—they need more time,” Forsyth-Thompson said. “Instead of a trade-off between paying down their credit card balance, taking out new credit or point-of-sale finance, or abandoning the purchase entirely, with Float, merchants can now offer their shoppers an alternative.”
Float did not immediately reply to PYMNTS’ request for comment.
The PYMNTS Intelligence report “Navigating New Norms: The Use of Card-Linked Installment Plans in Online and In-Store Sales” found that more than 80% of acquirers said providing card-linked installment plans leads to greater sales volume.
“A consensus has formed among acquirers that offering card-linked plans significantly influences consumer purchasing behavior, making customers more inclined to either purchase more or opt for higher-priced items,” the report said.
In a blog post on its U.K. website, Float said that card-linked installments are especially useful for high-ticket items in categories such as consumer electronics and pre-owned tech; sports, leisure and outdoor equipment; and home furnishings and interiors.
“Credit card holders making bigger, more deliberate purchases need something built for that moment,” the post said. “That’s where card-linked installments come in—no order limits, no new credit application, no ceiling on what your checkout can process.”
For merchants, Float’s card-linked installments have delivered a 134% average uplift in average order value, 20% to 30% higher conversion rates, an average basket size of around 500 pounds (about $668) and no cap on order size, according to the post.
