New credit models focus on merchant profitability: How are the rules changing?

TL;DR

Point-of-sale financing is essential for retailers facing increased costs and cautious consumers.
Traditional models incur high commissions for merchants on financed transactions.
Sumas, a Colombian fintech, offers a commission-free model for merchants on credit sales.
This model aims to incentivize consumption without reducing merchant profitability.
Credit at the point of sale can increase the average ticket size by up to 50% and customer lifetime value by up to 40%.
Sumas's differentiator is the absence of commissions, shifting the competitive advantage to the brand.
Challenges for these models include financial sustainability and credit risk management.
The use of credit is evolving from a purchase incentive to a tool for productivity and profitability.

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