How digital escrow can play a major role in solving transaction challenges
escrow services are transforming the way transactions occur globally by providing an impartial mechanism to ensure trust. This system enables a third-party agent to hold funds or assets until both parties meet agreed-upon conditions. As the global economy embraces technological advancements, digital escrow systems are gaining popularity across sectors. However, the industry faces challenges such as regulatory complexities and cybersecurity threats, which require innovative solutions for sustained growth.
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How digital escrow works
Digital escrow involves a neutral third party managing funds or property until the agreed-upon terms are met. Parvez Siddiqui, co-founder of a digital escrow platform, explains, “Trust has always been essential to commerce. This process ensures buyers and sellers are protected during online deals. Digital escrow is already being used across various sectors, including e-commerce, real estate, supply chain financing, crowdfunding, and luxury goods transactions."
The process typically includes the following steps:
Agreement establishment: Buyers and sellers define the transaction's terms, including deliverables and payment conditions.
Payment deposit: Buyers deposit the payment into the escrow account.
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