The reason most POS companies have not been able to incorporate the value-added service of consumer finance is that the loan usually comes from a third-party lender or bank. Square provides its own financing to consumers, but most POS companies don’t have the funds to do the same.

The integration of even one third-party lender into the POS is a very complex process. Using more than one lender is crucial for the retailer so that a higher proportion of consumer loans are approved, but integrating more than one lender is nearly impossible using traditional channels of integration with the POS. Continue reading at