EscrowTrustly in Deal Making

How to create trust and do more business across borders

Escrow for safer and secure Transactions

Many businesses are clear about how they create value; even how to acquire customers but few had paid leaf to what they decided is beyond their capability- creating trust. Trust is hardly created by word of mouth. Beyond testimonials or a long reputation, there is hardly a better way to onboard new clientele than making existing patronage itch free by committing customers into paying beforehand but safely. Escrow is what it is called- when you as a trader for example, asks your buyer to pay a third party which is usually a licensed financial institution with an agreement that the payment will be forwarded to you once you deliver; that otherwise they will have a refund. Simple as this is, the lack of it have necessitated a couple of unwholesome innovations which have led, for example, to a loss of 500 thousand naira for a single vendor in 2024. No reliable statistics have been published about total amount lost to to Pay On Delivery model but the travails of the big guys doing it- Jumia, Konga, SuperMart and PayPorte implies several billions may have gone down the drain.

The dilemma in not using Escrow

Not only in e-Commerce, but all industries where payment is involved, have the lack of the right solution created subcultures which proves inimical to growth. Nigeria market challenges, as deduced in extant literatures, (which reflects African challenges) includes that well-connected business people gain from anticompetitive practices that shield Nigeria from market forces. Also mentioned as a challenge is non-transparent economic decision making, especially in government procurement. The vicissitudes of the business terrain when better understood reveals this is hardly the fault of procurement officers from different corporations, neither is it the fault of diasporans who stick to just one vendor and totally close shop once trust is breached as it is often the case. Unavailability of a secure system, insufficient financial technology to entrench trust is a foremost reason for this, and huge volume of potential transactions have been lost due to it.

Escrow as an option for eCommerce & International Trade

Since the event of homicide on Mr. Chukwuma Eleje went viral in 2017 no one was in denial that the idea of receiving payment for orders at the point of delivery is a model which had to go. Drinks.ng, SuperMart, PayPorte and Konga dumped the idea, but Jumia stuck to the guns. Jumia went ahead to include the escrow service in its operations, just as Konga, SimplePay and Voguepay. For these platforms escrow is still being treated as an option. In cross-border trade escrow is more prevalent, but traders who are neck-deep in old practices may be leaving money on the table. Escrow, by its own design helps create trust and in turn increases sales as well as protect both the buyer and the seller without giving too much power to either.

How the Escrow works

Escrow Agents like yours truly, Escrowtrustly holds payment holds funds or assets in trust on behalf of buyers and sellers until agreed obligations or conditions in respect of transaction between them have are met, after which the funds or assets are released to the entitled party by agent. Escrowtrustly harnesses the Whatsapp to maintain smooth communication. Transactions are described in simple terms; items, prices, and other relevant details while both parties provide valid IDs verification for security and trust. Buyers send payment to Escrowtrustly’s secure account and once buyer confirms receipt and satisfaction of the service or goods.

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