Float

Money that’s been received but not yet paid out. It is temporarily held by a provider.

Float is the gray zone in money movement. When a payment is initiated but not yet settled (say, a customer pays a platform, but the payout to a vendor is scheduled for later) that money is in float. Payment processors, neobanks, and platforms often benefit from this temporary hold, earning interest or delaying outbound costs. Holding float improves margins and gives providers more control over cash flow. It’s a subtle, powerful part of the fintech business model.