SumUp Secures SCFI Licence From Brazil’s Central Bank to Expand SME Credit

SumUp has secured an SCFI licence from the Central Bank of Brazil, giving the fintech greater flexibility to expand lending and funding solutions for small and micro businesses across the country.

The new authorisation marks an important step in SumUp’s Brazilian financial services strategy. It replaces the company’s previous status as a Sociedade de Crédito Direto (SCD) and expands the regulatory framework under which SumUp can structure credit, manage funding and serve small businesses.

The move comes as fintech lenders across Brazil look to broaden their financial services offerings while operating within a more established regulatory environment.

SumUp Expands Its Lending Capabilities in Brazil

Under its previous SCD structure, SumUp was primarily restricted to lending using its own resources through permitted digital channels.

The new Sociedade de Crédito, Financiamento e Investimento (SCFI) licence gives the company a broader operating framework.

This allows SumUp to diversify its funding sources, develop a wider range of financing products and manage its balance sheet with greater flexibility.

The company will also operate under direct supervision from the Central Bank of Brazil, strengthening its regulatory position as it expands its credit business.

For SumUp, the change is particularly relevant because small and micro enterprises represent a significant part of its Brazilian customer base.

The company has already extended approximately US$18.5 million (R$100 million) in loans in Brazil and currently offers credit to around half of its customer base.

While payments remain SumUp’s primary revenue source, credit and banking services have become increasingly important, accounting for approximately 30% of revenue according to company representatives.

Why the SCFI Licence Matters for SumUp

The new licence could give SumUp more control over how it funds and distributes credit.

For fintech lenders, access to diversified funding is important because it can reduce dependence on a single source of capital and support the development of larger lending portfolios.

The SCFI framework can also provide greater flexibility in structuring financial products and managing a lender’s balance sheet.

For SumUp, the timing is significant.

The company has been building its Brazilian credit operations while continuing to expand its broader financial services offering to merchants and small businesses.

Its strategy increasingly extends beyond payment acceptance toward a wider ecosystem that can include payments, credit and banking services.

That creates an opportunity to use transaction and merchant data to develop more relevant financial products while maintaining the regulatory controls required by Brazil’s financial system.

SumUp Strengthens Its Funding Position

SumUp has also been strengthening the capital base supporting its credit operations.

The company recently raised approximately US$157 million (R$850 million) through two receivables investment funds.

That brings the total amount raised through similar structures to more than US$444 million (R$2.4 billion) since May 2021.

At the group level, SumUp received a US$1.7 billion investment led by Goldman Sachs in 2024, when the company was valued at approximately US$8.9 billion.

The combination of additional funding structures and the new SCFI licence gives SumUp a stronger platform from which to scale its lending activities.

However, regulatory approval does not automatically guarantee rapid credit growth. The company will still need to manage credit quality, funding costs, defaults and risk carefully as it expands its portfolio.

Brazil’s Fintech Market Is Becoming More Regulated

SumUp’s regulatory upgrade also comes at an important moment for Brazil’s fintech industry.

The country’s financial ecosystem has developed rapidly, supported by digital payments, Open Finance, instant payments and increased competition from fintech companies.

At the same time, regulators and industry participants are paying closer attention to data security, consumer protection and the sustainability of fintech partnerships.

Discussions at the 2026 Febraban Tech event highlighted concerns around data leakage and the need for stronger guidelines for certain Open Finance partnerships.

Against this backdrop, SumUp’s direct regulatory relationship with the Central Bank provides a clearer framework for its credit operations.

For customers, stronger regulatory oversight can also be important as fintechs increasingly provide services traditionally associated with banks.

SumUp Looks Beyond Brazil

The Brazilian licence is part of a broader expansion strategy across the Americas.

SumUp is also entering the Mexican market as it seeks to increase the Americas’ contribution to global revenue from around 25% to approximately 30% over the next two years.

The company plans to introduce its SumUp Go card terminal in Mexico, followed by additional products such as Tap to Pay, payment links and a digital account, subject to local licensing and regulatory requirements.

The expansion demonstrates that SumUp is seeking to build a broader financial services presence across Latin America rather than focusing solely on payment processing.

Brazil remains particularly important because of the scale of its digital financial market and the large number of small businesses that require accessible payment and financing solutions.

What the SCFI Licence Could Mean for Small Businesses

For small businesses, access to working capital can be a major challenge.

Traditional lending processes can involve lengthy applications, extensive documentation and limited access for businesses with short operating histories.

Fintech lenders can potentially use alternative data and digital transaction histories to improve credit assessment and streamline lending.

SumUp’s existing relationship with merchants gives it access to payment activity that could support more data-driven credit decisions.

The challenge will be balancing faster access to capital with responsible lending.

As SumUp expands its credit portfolio, maintaining strong underwriting standards will be critical. A larger lending operation can create new revenue opportunities, but it also exposes the company to greater credit and operational risks.

Payments, Credit and Banking Are Converging

SumUp’s development reflects a broader trend across fintech.

Payment companies are increasingly moving into adjacent financial services as merchants look for integrated solutions rather than separate providers.

A merchant may want to accept payments, access working capital, manage business finances and receive financial insights from the same platform.

This convergence is creating competition between fintechs, banks and financial infrastructure providers.

SumUp’s move into a broader regulated lending structure illustrates how payment-focused companies can gradually evolve into more comprehensive financial platforms.

What Comes Next for SumUp?

The immediate focus will be on how SumUp uses its new regulatory position to expand its credit business while maintaining strong risk controls.

The company will need to balance three priorities: growth, funding and credit quality.

Its existing merchant network provides a potential distribution advantage, while the new SCFI framework could give it greater flexibility in developing and funding financial products.

At the same time, Brazil’s evolving regulatory environment means compliance, data protection and responsible lending will remain central to the company’s strategy.

The SCFI licence therefore represents more than a regulatory change. It gives SumUp an expanded foundation for its ambition to provide payments, credit and banking services to small businesses across Brazil.

The bigger question is whether SumUp can turn its expanded regulatory and funding capabilities into a scalable credit platform while maintaining strong asset quality and responsible lending standards.

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