Why you need Escrow — Pandascrow
14th May, 2022
2 mins, 3 secs read
Commerce has existed from the early days of human civilization when humans were involved in a trade by barter system (exchange of goods with one another).
In today’s world Commerce refers to the macroeconomic sales and purchases of goods and services.
Simply put, Commerce is the activity of buying and selling of goods and services, especially on a large scale, and involves the transportation from place to place.
It consists of trade, and the activities which facilitate trade.
The underlying importance of Commerce is that it ensures the availability of goods and services for consumer’s i.e to say it involves the distribution and delivery of goods from the manufacturer to the consumer.
However, one pitfall of Commerce is the problem of Uncertainty. The imperfect nature of humans raises doubt as to the transparency and integrity of a Purchaser to deliver goods, on one hand and the Consumer’s willingness to pay for goods and/or services delivered.
This “Uncertainty” has stirred the introduction of Escrow in the Commerce Industry.
WHAT IS ESCROW?
Escrow is a contract binding two parties whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction until the conditions for transaction is(are) met. Escrow bridges the gap of Uncertainty or doubt towards the completion of a transaction.
This is where we come in… Pandascrow
Pandascrow is a technology company that solves payment problems for ambitious businesses, using escrow technology to protect businesses and customers from fraud.
HOW DOES ESCROW (PANDASCROW) WORK?
Escrow system serves as a “middleman or a safety net” for the buyer and seller, to assure both parties that the agreed terms and conditions governing their transaction will be duly fulfilled.
To this effect, the buyer binds the seller by escrow contract and transfers payment to the agreed Escrow provider. Where the contractual obligation(s) o the transaction have been met(like delivery of goods in proper condition), upon instruction the funds are transferred to the seller.
Let’s keep it simple;
- A transaction is initiated through a third-party
- A buyer pays money in the name of the business
- The business fulfils the transaction and after the buyer confirms that the terms of transaction is met, the third-party releases/disburses funds to the business
Benefits of Escrow
- Serves as security for funds and assets
- Eliminates the possibility of fraud
- Ensures a degree of safety for both parties
- Opportunity to inspect the goods and verify its authenticity
- Reduce risk of loss in transactions
When next you want to buy from an Instagram / WhatsApp / Facebook / Twitter or others and you feels a tiny bit of doubt, save yourself the heart ache, use Pandascrow for that transaction
If this is your first time — visit pandascrow.io to get started.