How digital escrow works
For SMEs, the solution offers a comprehensive ‘trust infrastructure’ comprising:
- Data services such as business verification, sanctions, and credit history
- Digital sign up and exchange of documents relating to KYC, escrow, transaction, and shipping
- Simple milestone/performance-linked payment workflows, administered by a trusted third party
- On-demand visibility of transaction status
Benefits of Digital Escrow
- Funds held in escrow are protected from insolvency of either party due to neutral ownership of funds
- Due diligence from an independent party to help determine that a commercial counterparty is a credible partner
- Payment upon performance or fulfilment of predefined criteria, e.g. delivery vs. payment
- Flexibility around different payment workflows e.g. milestone-based staged fund ins or pay-outs, payment on inspection or delivery.
- Ability to work in tandem with working capital financing products e.g. financing the buyer to fund escrow
Security with YataPay?
- Seamless payments for all project participants and subcontractors
- A digital experience and trusted environment for all parties
- KYC/KYB and AML services
- Real-time notifications and full transparency on the status of funds
- Increased efficiencies and risk reduction for transacting parties
- Peace of mind and reduced insolvency risk as funds are held in safeguarded and segregated accounts with a tier 1 bank
