Changing collation of SQL Database in Production environment to minimize downtime
I just tried this and it worked in Transactional Replication:

Server Level Collation is Finnish_Swedish_CI_AS
Database Level Collation of both sides of the databases are the same which is SQL_Scandinavian_Pref_CP850_CI_AS
Column Level Collation at publisher side database is SQL_Scandinavian_Pref_CP850_CI_AS and subscriber side database is Finnish_Swedish_CI_AS

The above setup delivered correct data from the publisher side database to the subscriber side database.
Its column-level collation change, which takes time and that depends upon how much data the table contains. Database level collation change can be managed in downtime by just dropping the dependencies first and recreating them. So, its the Database level collation which was causing this data issue, when it was differing, not column-level collation.