Feedback: Floa expands ever more widely

Floa, a leading specialist in the Buy-Now-Pay-Later market in France, has just presented its latest results and, above all, its ambitions for future expansion. The subsidiary of the BNP Paribas group now intends to impose its leadership in Europe, despite the potential obstacles posed by competitors and regulators.

FACTS

• Floa will be able to count on the support of BNP Paribas to achieve its new objectives. First of all, they are quantified, since the BNPL specialist is aiming for 4 billion euros in production for its offers by 2023.

• To achieve this, Floa plans to rely on a larger customer portfolio, set at 5 million users (compared to 4 million currently). Floa also offers its payment solutions to more than 10,000 merchants at present.

• These objectives appear to be entirely achievable insofar as Floa can justify a dynamic growth rate of 7% over 2022, with 2.8 billion euros financed and over 800,000 cardholders. 

• The company currently employs 450 people but plans to recruit 110 new positions in 2023 (50% Tech, Innovation and Data profiles, 35% French and International sales profiles and 15% support functions).

• Finally, the French leader in fractional payments wants to operate more widely in Europe. Already established in France, Italy, Belgium, Spain and Portugal, Floa is expected to offer its services in a dozen European countries by 2025.

CHALLENGES

• Leveraging combined strengths : Floa was acquired by BNP Paribas in August 2021. The announcement of its European deployment illustrates once again the relevance of an association between an innovative model specific to FinTech and a giant with a large strike force and capital offering a good financial base. 

• Shared ambitions : While Floa seeks to consolidate the strength of its brand, BNP Paribas intends to continue to grow its innovative payment activities in Europe. This is a way for the historic group to consolidate its position as a reference in banking while avoiding disruption.

• A still dynamic market : According to an exclusive KANTAR study conducted for Floa in November 2022, 44% of French people use, at least occasionally, a payment service in installments or deferred payment. 

MARKET PERSPECTIVE

• Floa and the BNP Paribas group have great ambitions for the European BNPL market. However, in addition to the abundant competition, Floa will also have to deal with the increasingly restrictive European directives regarding BNPL offers. 

• In the United Kingdom as in Europe, the rules have recently been tightened in order to better regulate this market, which is contested by many players.