A new B2B online credit service for small and medium-sized businesses

Credit as a Service, or CaaS, uses a system of software connections with multiple data sources, including rating agencies and the Dun & Bradstreet database of private companies, to determine in one minute whether a buyer potential has identification and is creditworthy for particular credit levels, says Brandon’s Lance, president of the MSTS.

The MSTS CaaS app charges client sellers starting at around 1.75% of value per transaction, compared to typical credit card fees ranging from 2.5% to 3.5% for online transactions , explains Spear. MSTS introduced its CaaS in May for large corporations, including many electronics retailers who have started expanding beyond consumer sales to also sell to corporate offices and hotel chains.

The new CaaS version is aimed at online B2B sellers with annual sales ranging from approximately $ 5 million to $ 100 million.

Last spring, the average CaaS transaction value was between $ 6,000 and $ 7,000, but the average is now closer to $ 1,000, according to Spear.

MSTS offers CaaS as a white label program on which its corporate clients can put their own marks. The main component is an InvoiceMe application that connects to an online seller’s e-commerce platform. When a customer of an MSTS customer clicks an InvoiceMe button to process a payment, the system pulls information from a network of databases to verify the customer’s identity and match their creditworthiness with an approved funding level. .

CaaS also integrates with procurement software applications, explains Spear. It’s designed to act as the last step in a three-part technology system that businesses can use to find suppliers, manage supply contracts, and process final payment, he adds.

“We help create a bridge between procurement and payment,” says Spear. For example, he adds, MSTS provides a contract compliance service that will ensure buyers and sellers have copies of documents like purchase orders and invoices to reconcile payments.

MSTS, a subsidiary of World Fuels Services Corp., has been in the payment and credit services industry for decades; it manages approximately $ 5 billion in volume with clients in over 190 countries. In addition to the United States, it makes its CaaS available in more than 30 national markets, including Canada, Mexico, Singapore, Australia and 22 countries in Europe.

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David A. Albanese

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