Escrow is one of the oldest tools in commerce, but in digital trade it needs to be fast, mobile and transparent. Escrow Safe Trade is Paysasa's take on it: funds stay locked until fulfilment terms are met, reducing disputes on higher-value trades.
This deep dive looks at the building blocks — holds, milestones, release triggers and disputes — and how they fit together.
The core: a hold, not a handover
When a buyer funds an escrow, the money leaves their available balance and is held. It does not go to the seller yet. Both parties can see that it is secured, and both see the same status.
Why this matters:
- The buyer is not trusting a stranger with their money.
- The seller knows the money is real before shipping or starting work.
- Neither side can quietly move the goalposts.
The escrow overview in your dashboard shows active holds, funds currently frozen and escrows needing attention, so you always know what is pending.
Creating an escrow
An escrow typically includes:
- The counterparty, chosen from contacts or by wallet number, and in some cases a till number.
- The amount to be held and a description of what is being traded.
- The release trigger — what needs to happen for funds to be released.
- An auto-release deadline, where shown, which helps deals reach a conclusion.
- Milestones, for projects delivered in stages.
The buyer reviews the summary — including the initial hold and total charged — and authorises with a PIN.
Release-based escrow
The simplest model: the buyer pays into protection, the seller fulfils and the buyer confirms. When the buyer authorises the release, the seller is paid. This suits one-off purchases such as a phone, a sofa or a bulk order.
Milestone-based escrow
For larger jobs, the total is split into milestones. The seller marks a milestone complete, the buyer approves it and that portion is released. This suits:
- Website or software development
- Construction and renovations
- Event production
- Bulk manufacturing with staged deliveries
Milestones keep both sides motivated: the seller gets paid as they deliver, and the buyer only releases money for completed work.
Disputes: a fair pause
If something goes wrong, the buyer can raise a dispute while funds are still held. Paysasa pauses release while the case is reviewed. Both sides share the order reference and evidence of what was promised and what arrived. Resolved cases either release the payment to the seller or return it to the buyer as a refund.
Key point: disputes must be opened before release. Once a buyer releases funds, the payment is final.
The full transaction trail
Every escrow keeps a full transaction trail: creation, funding, milestone updates, releases, disputes and refunds. This record protects both parties and makes reviews faster and fairer.
Escrow and buyer protection
Escrow Safe Trade powers Paysasa's buyer protection: checkout funds can be held until delivery terms are met, with one clear record for buyers and sellers.
Where escrow fits best
- Peer-to-peer deals between individuals who have not met.
- Marketplace transactions, where listings involve unfamiliar sellers.
- Service contracts with defined deliverables.
- B2B orders between new trading partners.
Good practice built into the design
- PIN authorisation for funding, releases and refunds.
- Clear statuses: active, released, disputed and refunded.
- Transparent fees shown on the pricing page.
- Disputes section in the dashboard for review and follow-up.
An illustrative example
Imagine a furniture maker in Gikomba building a dining set for a client in Nairobi. They agree a three-milestone escrow: materials purchased, frame assembled and final delivery. The client funds the full amount upfront, which is held. The maker marks each milestone complete with photos, the client approves, and each portion is released. At delivery, the client spots a scratch and raises a concern before approving the last milestone; the maker fixes it and the final release goes through.
Common questions
Can the seller withdraw held funds?
No. Held funds are frozen until they are released to the seller or refunded to the buyer.
What if the buyer never confirms?
Where an auto-release deadline is shown, it helps the deal reach a conclusion. If something is wrong, the buyer should raise a dispute before release.
Conclusion
Escrow Safe Trade combines holds, milestones, release triggers and a fair dispute process into one transparent flow. It is designed to make high-value and first-time trades feel as safe as buying from someone you have known for years.
Ready to trade with protection? Explore Escrow Safe Trade or sign in to Paysasa to create your first escrow.
