- 1.Escrow Kenya : Bridging The Trust Gap Between The Seller And The Buyer
Online business are on the rise and this industry is picking momentum. Today, you can order a piece of watch from a Michael Korr’s shop or website in the United States, you can have it in Kenya in the next two weeks or so depending on their shipping mode.
This does not mean that the individual had to go to the United States or even sent a money order. All they did was pay for the watch using online modes of payments such as the MasterCard, visa card, PayPal or even mobile money transfer like M-Pesa.
Sometimes, one might be scrolling through Facebook, comes across an individual that sells handbags. Let’s say Juma, the buyer is in Nakuru while the seller, Ali, is in Mombasa. The two communicate on the prices of the bags and Juma even strikes a bargain which Ali accepts because he is ordering in bulk so that he can resell.
Now that the two cannot meet physically for the business deal to be closed, Juma sends Ali 10,000 Kenyan shillings for ten handbags via M-Pesa and Ali says that Juma will receive the shipment the following day in the evening.
The next day comes and Juma does not receive a text from the courier services as promised by Ali. Juma tries to contact Ali but he, at first, is not picking up the calls and then by the 5th attempt, Ali’s phone is switched off.
Juma cannot reach him over the course of the next week and he soon realizes that Ali was a con and that his money was gone just like that. There is nothing that can be done but if Juma had used Escrow, all these would have been avoided.
So, what is Escrow Kenya you ask?
Escrow is in essence a financial arrangement where a third party is entrusted to hold funds as the contract is underway and once it has been executed, the funds can be released to the seller. This happens often after the buyer is satisfied with the products or services offered. Escrow was established to eliminate the ever impending and looming counter-party risks. It secures and regulates payment and ensures that all the terms and conditions of the agreement have been met.
Escrow Kenya is owned by Online Pesa Kenya Limited, one of Kenya’s most trusted provider of solutions as regards to online payments. Over $6 million has been processed by Online Pesa for Kenyans doing online business from 2013.
Escrow Kenya is regularly audited, bonded and license and also audited by government agencies with the aim of protecting public funds as well as determine whether their operations are sound and safe. These government agencies also check to see if Escrow Kenya is compliant with escrow statutes and regulations.
Escrow Kenya under Online Pesa Kenya Limited is the most trusted escrow service provider in Kenya and it is registered under the Companies Act of 2015. The sign up process is easy and straightforward. There is a “Register” button at the top of the website’s page where potential clients can sign up and start their transactions.
Online Pesa Kenya Limited was founded by Robert Kamaru on October 1st 2018 after he too was conned 40,000 Kenyan Shillings by a fraudster posing as an iPhone seller. This platform has signed up at least 300 users and mediated 33 transactions with a gross value of 87,000 Kenya Shillings.
Escrow Kenya have their offices at 56 Blessed House, Thika Road, opposite Garden City Mall. They can be contacted through +254703300000 or via email at firstname.lastname@example.org. Potential clients can also connect with them on Facebook.
What Escrow Kenya Does
Escrow Kenya is in place to guarantee security for both parties – the buyer and the seller. This is an important aspect when trading online because there are myriad of cons out there, people who want to take advantage of others.
There are buyers like Juma who have been burnt while a seller could at times face the brunt when he or she sends an item across the country and once the buyer receives it, he disappears and never sends the money.
With Escrowkenya.com, the buyer is able to enjoy peace of mind knowing that they cannot lose their money in the transaction because their money is held by a trusted third party.
The same goes to the seller who knows he will not run into a loss. The seller rests easy with the assurance that they will receive their full payment once the buyer is satisfied with the product or service in agreement.
Escrow holds the funds sent by a buyer and when the seller delivers the products or services to the buyer, the buyer gives a go-ahead to Escrow to release the money to the seller. At the end of the day, both parties are satisfied and everyone’s interests are met.
The Usefulness of Escrow Kenya
Escrow kenya is useful in facilitating online transactions between sellers and buyers who are often in different geographical locations, who have no yet built trust between each other or where a large amount of money is involved. Escrow Kenya serves as a mediator to ensure a business deal goes through successfully and that the buyer and seller create a long-term working relationship.
Escrow Kenya is known to increase sales in a businesses. Any small scale business with an online shop that makes regular sales on Facebook or Instagram understand that many sales are not made because a lot of people on these platforms would want to buy the product or service but cannot because they are afraid of making payments before receiving the service or product.
This is where Escrow Kenya comes in and can help you prevent up to 90% of the sales lost. They can even recover these lost sales because buyers are more at peace when they deposit their money though a trusted third party and not sending it to the seller directly. Partnering with Escrow Kenya is one sure way of increasing sales and growing you online business.
Problems that Escrow Kenya Has Solved
Escrow Kenya has eliminated the chances of being conned online by unscrupulous people posing as buyers or sellers. This has been achieved by Escrow Kenya, as a trusted third party, holding the funds from the buyer until the seller sends the goods or services to the buyer and only upon confirmation by the buyer that everything is in the right condition or quality will the money be sent to the seller.
Escrow Kenya has also solved the issue of lost or potential sales because the buyer and the seller are not in the same geographical location. With Escrow Kenya, a person in Turkana can buy from another in Mombasa and vice versa.
Escrow Kenya has also dealt with the risk involved with transacting large amounts of money. Both parties can rest assured that they will not be mugged carrying around large sums of money in bags. Bank transaction fees and legal fees are also eliminated in the process which makes it a lot cheaper to transact with escrow.
How Escrow Kenya Works
To ensure that Escrow Kenya serves both the sellers and the buyers well, there are a number of “ground rules” that have to be adhered to.
- The buyer and seller have to agree upon the terms.
Any one of these two parties can initiate a transaction via Escrow Kenya and provide the terms and conditions that they had agreed prior during their private conversation. Some of these conditions or agreements include the price of the product or service, the party paying the shipping fees, the mode of shipment, whoever is paying the Escrow Kenya fees as well as the time it will take for the product or service to reach the buyer. All these things have to be noted by Escrow as agreed upon by both parties to avoid any misunderstanding as the contract is in progress.
- The buyer deposits the funds
After the conditions have been agreed upon by all the parties, Escrow Kenya asks the buyer to make a deposit to Escrow. Once the payment is verified, Escrow Kenya will notify the seller of this and ask the seller to send the products or service to the buyer.
- The seller delivers the goods and services to the buyer
After the seller is authorized by Escrow Kenya to send the goods, the seller will communicate to Escrow Kenya that they have made the delivery. Escrow Kenya will then wait for the buyer to confirm receipt of the goods or service and whether or not they are in good condition or best quality as agreed upon before.
- The buyer accepts delivery
If the buyer informs Escrow Kenya that they received the goods or services in good condition or top notch quality, they will authorize Escrow Kenya to release the funds to the seller.
- The seller is paid by EscrowKenya.com
This marks the end of the contract when the buyer has received their product or service and the seller receives payment for the same and all the three parties are happy and satisfied.
The pros of using Escrow kenya
The Escrow Kenya arrangement works well for parties in different situations.
- Escrow Kenya works well when large sums of money are being transacted
- It is advantageous when the buyer and seller are in different parts of the country and cannot meet in person
- When there are issues with trust and thus hindering a sale from being made.
- com cuts down high travel expenses
- It also cuts out any expensive middlemen that were often involved
- Sellers are able to make sales with customers that they would often forego because they were in far off areas mostly because both parties could not agree on what came first between the delivery or the payment.
- Security of payment is guaranteed
- It is convenient and cost saving
- Provides a business with peace of mind and more time to focus on getting more customers and growing their business instead of worrying about whether a buyer is a con or not or going back and forth on who should go first
Cons of using Escrow Kenya
- Some people still do not believe in using a third party to hold funds. They are skeptical of the third party running away with their money. A lot more sensitization and education on the importance of escrows should be done.
What people say
Reviews on the company’s website by people that have used Escrow Kenya’s services describe the experience as superb. One buyer that did not receive the products as described was able to escalate an issue with Escrow Kenya’s resolution team and upon consultation of both the buyer and the seller, the buyer was able to be given a partial refund and he kept the goods. Another user of the services explains that he got a full refund after the company ascertained that the seller was being fraudulent.
The company advises users and more so the buyers to raise a dispute as soon as they receive goods that were not described in the prior agreement instead of staying quiet. This way, the company can help you get a full or partial refund according to the conclusion reaches.
What can be Improved
As of today, Escrow Kenya is doing its best and serving its customers well. What can be improved is the creation of a phone application to make it even more accessible to local businesses and especially small ones that are yet to scale.
Escrow kenya is completely different from the traditional escrow that was tedious and involved a lot of paperwork with banks and lawyers. Better services are now offered at a much lower rate and everything is transacted online. There is also no legal jargon that is often confusing to the local individual. A safe and secure transaction can be done using just a few clicks
There are also no hidden costs when using Escrow kenya. All fees are quoted upfront including pay bill fees. This ensures that no one is met with unexpected additions.
Users are also allowed to use their money on Escrowkenya.com to initiate other transactions and an individual can also withdraw any amount at a fixed rate of 50 Kenyan Shillings. As for the Escrow Kenya fees, the amount is 3% of the transaction value and can either be paid by the buyer, the seller or both parties split the bill equally.
Escrow Kenya should be adopted more by Kenyan businesses; whether small or big especially now in the era of e-commerce. As one of the pioneers of mobile money transfer, Escrow Kenya should be well utilized to avoid fraudulent individuals who want to rip hardworking Kenyans of their hard earned money.