BNP Paribas-backed FLOA Pay is poised to expand its Buy Now, Pay Later (BNPL) offerings following a partnership with UATP, a global payment network, announced October 9, 2024. The collaboration will integrate FLOA’s installment payment solutions into the UATP network, offering consumers increased flexibility in financing purchases.
The agreement, slated to become operational in the fourth quarter of 2024, allows UATP-affiliated merchants to provide customers with the option of splitting payments into installments, a feature increasingly popular in European markets. FLOA Pay currently offers payment plans in 3, 4, 10, or 12 installments for purchases starting from €50, operating across France, Italy, Portugal, Spain, Belgium, The Netherlands, and Germany.
FLOA, a subsidiary of BNP Paribas since 2022, distinguishes itself within the BNPL landscape as a licensed European financial institution. This structure, according to industry analysis, provides a level of financial security and regulatory compliance often absent in BNPL providers originating as startups. The company serves over 4 million customers and partners with more than 15,000 e-commerce merchants.
The partnership with UATP aims to broaden the reach of FLOA’s BNPL solutions, particularly among merchants who utilize UATP’s network for payment processing. UATP’s network is utilized by airlines, travel suppliers, and other businesses. FLOA’s solutions allow consumers to split payments into 3 or 4 equal installments over 90 days.
FLOA’s position in the European BNPL market is significant, with 68% of Europeans utilizing installment and deferred payment solutions, according to PPRO data. This widespread adoption underscores the growing consumer demand for flexible payment options and budget management tools. FLOA’s model is built within a European financial culture where credit is regulated, consumer protection is prioritized, and installment payments are a normalized practice.
The company’s approach differs from some BNPL providers that position themselves solely as “payment options,” instead embracing its role as a provider of consumer credit. This distinction is particularly relevant given increasing regulatory scrutiny of the BNPL sector. Market Pay Assist identifies FLOA as a BNPL provider tailored to the needs of merchants and customers in Western Europe.
The emergence of bank-backed BNPL providers like FLOA represents a potential shift in the industry, moving away from startup-driven innovation towards a model grounded in established financial infrastructure and regulatory oversight. FinQfy reports that FLOA is “engineering” deferred payments with institutional discipline, regulatory depth, and merchant pragmatism.
