We conducted a series of research on the state of Escrow in Nigeria to understand what people know or understand by the term escrow, and if they get to use it in the process of conducting business with strangers online

From the report of our research, we realized that there are 3 categories of people who may have heard, used, or do not know what escrow is

Without much ado, let us take a look at these categories of persons

  1. People that know nothing about Escrow 70%
  2. People that unknowingly use Escrow informally 25%
  3. People that knowingly use Escrow Formally 5%

If we revert back to this Question, The State of escrow in Nigeria, Are People using Escrow in Nigeria? the big Answer will be a partial Yes

Why we say it is a partial Yes is because not everyone knows what escrow is in the first place. We asked quite a few persons if they know what Escrow is and a majority said No while a few percentages said Yes and their source was through Google or known from School

Now out of these few persons that said they know what escrow is, only a fraction of that percentage actually used it in a real instance

 

1. People that know nothing about Escrow

escrow 3

The number of people in this category is much, these set of People have either not heard about it before or does not even know what it means

But the fascinating part of it is that almost 50% of these persons have carried out a transaction online before and about 30% of them have been defrauded at one point in time

So why didn’t they use an escrow for such a transaction? most of them said they never knew what escrow is and how to go about using it

While others said they were relying on the words of guarantee from the person they were transacting with who sometimes goes as far as swearing on their generation not to defraud them of their hard-earned money but afterward do just that, defraud them, block them on the instant message platform and never picks up their calls

One of them narrated a situation where he had known this supposed Graphics designer for years and looked up to him as a responsible person that won’t steep so low to do such an act but as the case may be, he ended up defrauding him of his hard-earned N21,000 and never picked his call for months, after months, he picked the call and said he was sick and will refund but never did till date

And not everyone is good with dramas and dragging someone on social media because by so doing, you will be calling yourself out too

To get this all sorted out, everyone has to be told what escrow is and how it helps in safeguarding them when doing business online.

2. People that unknowingly use Escrow informally

escrow 1

In the course of our research, we also came across these other sets of persons that always use a 3rd party person to conduct their transactions online, this 3rd party person is always the Admin of the group they trust or have been a part of for months or years

Either a Facebook Group Admin, WhatsApp group, or Telegram Group Administrators.

Though some of them use this to execute their transactions successfully, they never know it as Escrow, or would I say they never knew the term for such transaction process was called Escrow

Most times these Groups are Cryptocurrency Groups, PayPal Buy and Sell groups, or Digital Currency Exchange Groups.  Most times Freelancing groups deploy this too to safeguard the interest of their Members

On one side some members are aware they are using an Escrow service for their Transaction while some know that they are using the Admin for the Transaction

3. People that knowingly use Escrow Formally

escrow 2

This is the last but not the least of the Group of persons on Escrow, this could be referred to as the elites in Escrow, they know and use it formally either through a licensed platform like Escrow.com or other local platforms like 360 Escrow

Some of them had to discover this after a bad experience dealing with someone online without an escrow while others were outrightly not ready to deal with anyone without some form of escrow in the process of the transaction

In the process, either the Buyer or the Seller recommends an escrow platform that they should use.

What can People use Escrow for?

In Nigeria, most of the times people buy and sell services online through Social media platforms like Facebook, Instagram, Twitter, WhatsApp, and more

  1. When Selling your PayPal Funds, use Escrow
  2. When Selling your Blog, use Escrow
  3. When Selling your Website, use Escrow
  4. When Selling your Google AdSense account, use Escrow
  5. When Selling your Payoneer funds, use Escrow
  6. When Selling your Amazon Affiliate Account, use Escrow
  7. When selling your Bitcoin, use Escrow
  8. When selling Physical Goods, don’t do pay on Delivery, let the buyer commit by using Escrow first
  9. When selling your Facebook Page, use Escrow
  10. When selling your Facebook Group, use Escrow
  11. When selling your Instagram Account, use Escrow
  12. When offering Services online, use Escrow

How to Signup for an Escrow Account?

First, proceed to the 360 Escrow Registration page here and Signup 

360 Escrow sign up Page

if you are about to conduct a transaction with anyone online, be it, someone, you know before or a total stranger, tell the persons that you will like to do the transaction through 360 Escrow

Tell him or her to signup for a 360 Escrow Account and send you their username, with their username, you can create a new Escrow and pay to them, they will be notified of the Payment and they can start working or send your Goods to you, once you confirm receipt, you can release the Payment on your Dashboard and they will get their Funds

NOTE: You can fund your 360 Escrow Account through PayStack or PayPal

To learn more on how 360 Escrow works, check this article: How 360 Escrow Works

Summary

Now that you know the state of Escrow in Nigeria, what do you think? which group do you belong to? Have you heard of Escrow before? Have you used it before and how did it go

We will also like you to share your online shopping experience that went bad, what happened and how much was lost

Resources / References

  1. Escrow Services in Nigeria – https://360.com.ng/author/blog/escrow-services-in-nigeria/
  2. How to Initiate a Safe Payment Online – https://360.com.ng/author/blog/escrow-payment-in-nigeria/
  3. Nigerian Startup Launches Escrow Payment – https://disrupt-africa.com/2020/07/nigerian-startup-launches-escrow-payments-platform-for-online-shopping/
  4. Astrapay uses Escrow to enable Ecommerce – https://www.techcityng.com/atarapay-uses-escrow-to-enable-e-commerce/
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