- Escrow.com, a subsidiary of ASX-listed Freelancer (FLN), has been chosen by eBay Motors to protect online car purchases and reduce the risk of scams and fraud
- Escrow’s tech has been integrated into the eBay car selling arm, meaning consumers can make use of Escrow’s services directly through the eBay Motors website or mobile app
- The tech works by acting as a middle-man between a buyer and a seller and holding any money paid until certain conditions have been met
- When a car sale is made, the buyer’s cash is held in an Escrow.com account while they inspect and test drive the purchased vehicle
- If the vehicle is as advertised, the transaction is accepted and Escrow releases the funds to the seller. If not, the buyer returns the car and gets their money back
- eBay’s decision to integrate Escrow’s services to its website and app is a strong vote of confidence for the Escrow technology
- Shares in Freelancer are trading over four per cent higher today, currently worth 47 cents each
Freelancer (FLN) subsidiary Escrow.com has been chosen by online car selling giant eBay Motors to ensure vehicle purchases are safe and hassle-free.
Escrow is designed to reduce the risk of scams and fraud when online shopping by acting as a middle-man between the buyer and the seller. The company collects the money paid for a product and holds it in escrow until conditions laid out by the two parties are confirmed.
ASX-listed freelancing and crowdsourcing marketplace Freelancer bought Escrow in 2015.
This week, Escrow revealed its tech has been integrated into eBay’s car selling arm. Consumers can now use Escrow’s services directly from the eBay Motors website and mobile app to protect car sales and purchases and make the deals with peace-of-mind.
So, how does Escrow work?
Avoid the hustle
The first step in buying an Escrow-enabled vehicle from eBay is identity verification. The service verifies the identity of both the seller and the buyer before a vehicle purchase can be made so a user knows who they’re dealing with.
The buyer then makes the payment, but rather than heading straight to the seller, the cash is placed into an Escrow.com account and held. The seller is notified that the payment has been made and can then release the vehicle to the buyer.
Once the vehicle has been received, the buyer has two days to inspect, test drive, and monitor the vehicle to make sure what they paid for is exactly what they were expecting. If the vehicle holds up, the buyer can accept it and Escrow releases the money to the seller. If the car is not what was advertised, the buyer can reject the sale and return the car to the seller, at which point Escrow gives the buyer their money back.
Importantly, Escrow typically charges low minimum fees and commissions, meaning it’s generally cheaper than credit cards and other online payment methods.
Escrow.com General Manager Jackson Elsegood said the recent eBay partnership comes at a time when online security is of the “utmost importance”.
“Auto enthusiasts want the assurance of buying safely online,” Jackson said.
“Escrow.com protects eBay Motors customers on those transactions that matter, such as cars, motorcycles, boats, RVs, Powersports and more. From start to finish, each transaction runs smoothly and securely, while buyers and sellers receive equal levels of protection throughout the entire sales process,” he continued.
eBay Vehicles General Manager Ron Jaiven shared similar sentiments, saying the Escrow.com partnership is designed to help deliver the most trusted and easy experience for customers.
“With the introduction of Escrow.com, we’re evolving how users shop on our platform in a way that is unrivalled in the market and completely changes how users buy and sell cars on our platform,” Ron said.
eBay’s decision to integrate Escrow’s services directly to its website is a strong vote of confidence for the company’s tech, and a subsequent affirmation of Freelancer management’s call to snatch up the secure transaction company five years ago.
Freelancer shares are trading 4.44 per cent higher this morning, currently worth 47 cents each in a $209.84 million market cap.