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- Digital Wine Ventures (DW8) has entered a proposal with Multi Service to offer Credit as a Service (CaaS) for its WINEDEPOT direct-to-trade marketplace, set to launch this year
- Multi Service CaaS will take responsibility for managing the invoicing, collection and fraud detection processes involved with the offering
- CEO Dean Taylor is confident that the CaaS will have a significant appeal to both suppliers and trade buyers, especially due to the current COVID-19 pandemic
- However, the proposal with Multi Services is conditional to the execution of a definitive binding services agreement
- The proposal terms are for two years from the launch of the service and a one-off implementation fee and monthly fees
- On the market this morning, Digital Wine is up 10.5 per cent and is trading for 4.2 cents per share
Digital Wine Ventures (DW8) has entered a proposal to become partners with Multi Service to offer Credit as a Service (CaaS).
Multi Service is a global business-to-business (B2B) payment solutions provider.
Digital Wine is looking for a partner to offer CaaS for users of WINEDEPOT’s direct-to-trade marketplace when it launches this year.
Similar to Afterpay and other point-of-purchase credit solutions, WINEDEPOT’s credit solution will be outsourced to a payment solutions provider. This provider will take responsibility for managing the invoicing, collection and fraud detection processes.
CEO Dean Taylor is confident that the CaaS will have a significant appeal to both suppliers and trade buyers, especially due to the current COVID-19 pandemic.
“For as long as I can remember, the hospitality industry has relied heavily on overly generous terms provided to them by wine and alcohol suppliers. It is not uncommon for suppliers to wait up to 120 or 180 days to be paid in full. There is no doubt that COVID-19 has made the situation worse,” he said.
“To help the industry get back on its feet, we intend to offer suppliers using our Direct-to-Trade Marketplace the ability to receive cleared funds within 48 to 72 hours of each sale. Stacked on top of all the other benefits our platform will offer, I have no doubt that suppliers will find this optional service this very attractive,” he added.
Digital Wine believes CaaS will appeal to trade buyers, as they will no longer need to open and manage accounts with dozens of different suppliers on different trading terms.
“What attracted us to Multi Service to provide the Credit as a Service product is their deep domain experience and investment in cutting–edge technology that allows their payment system to be integrated directly into our own platform,” Dean explained.
“This allows us to make the customer credit approval process as frictionless as possible, with credit lines of up to $250,000 approved in less than 30 seconds,” he added.
The proposal with Multi Services is conditional to the execution of a definitive binding services agreement. The proposal terms are for two years from the launch of the service and a one-off implementation fee and monthly fees.
On the market this morning, Digital Wine is up 10.5 per cent and is trading for 4.2 cents per share at 10:14 am AEST.
