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, says Brandon Spear, president of MSTS.

The MSTS CaaS application charges client sellers fees starting at about 1.75% of value per transaction, compared with typical credit card fees that range from 2.5% to 3.5% for online transactions, Spear says. MSTS introduced its CaaS in May 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 newly release CaaS version is intended for online B2B sellers with annual sales ranging from about $5 million to $100 million.

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

MSTS provides CaaS as a white-label program 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.

The CaaS also integrates with procurement software applications, Spear says. It’s designed to act as the last leg of a three-part technology system that companies can use to source suppliers, manage procurement contracts and process the final payment, he adds.

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

MSTS, a subsidiary of World Fuels Services Corp., has operated in the payment and credit services industry for decades; it handles about $5 billion in volume with clients in more than 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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