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Comment by alroman | Hacker News Reader

Wow! Great job guys! I've often wondered how this could be solved in Mexico and you guys seem to have found a nice way to do it.

I'm curious, but would someone who has a small shop at the mercado be able to use your service? Would this let them compete against Coppel if a consumer want to buy cheaper electronics from the guy across the street? Are these the people you're targeting at all? Your aleados look very established.

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We do want to build for small businesses and merchants. We do actually have many of them, work with a lot of local bike dealers, auto shops, small electronics stores and they are happy they can offer financing to their customers. If they don't have an ecommerce or website we give them a magic link that they can send their customers through WhatsApp/Facebook.

+1 to this question

I'd guess that the strategy is to start with specific vendors or purchases where it's easier to model origination + creditworthiness. I think the open question from my end is whether as a VC-backed business there's an incentive to go downmarket anytime soon or whether it makes more sense to expand across higher-end businesses for the next few years.

Yeah. Something we've discovered is that merchant fraud is more common with smaller businesses, so that's a challenge. There's also a natural concentration of merchants. Like Affirm drives 30% of their revenue just from Peloton. We will see something similar.

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