The credit-as-a-service, or CaaS, uses a system of software connections with multiple data sources, including credit-rating agencies and the Dun & Bradstreet database of private companies, to determine within a minute whether a prospective buyer has a legitimate identification and is creditworthy for particular credit levels.
The MSTS CaaS application charges client sellers between 1% and 1.75% of value per transaction, compared with typical credit card fees that range from 2.5% to 3.5% for online transactions. MSTS introduced its CaaS in May 2018 for large companies, including many electronics retailers who have begun expanding beyond sales to consumers to also sell to corporate offices and hotel chains.
The CaaS version is intended for online B2B sellers with annual sales ranging from about USD 5 million to USD 100 million. MSTS provides CaaS as a white-label programme on which its client companies can put their own brands. The core component is an InvoiceMe application that plugs into an online seller’s e-commerce platform. When an MSTS client’s customer clicks an InvoiceMe button to process a payment, the system pulls information from a network of databases to check the customer’s identity and match his creditworthiness with an approved level of financing.
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