Escrow:a fintech solution for small & medium enterprises and agri commodity market players

Abstract

An escrow account is a third-party account where money is held until it is delivered to the intended recipient. It protects against fraud in high-value asset transactions as well as in dispute-prone agricultural markets, commodity deals, and real estate. These escrow payments have existed for some time, but their use has been confined to large monetary transactions like mergers and acquisitions, cross-border transactions, etc. With the advancement of contemporary technology and the emergence of the internet-based economy, the market's potential has grown. Current commercial transactions have always been dangerous, and the specific instance of India, which ranks 163rd out of 190 nations, demonstrates the inability of business contracts to be enforced. To address such conflicts, the nation should move toward an escrow-based payment system that can assure a courageous business climate in the country, allowing business agreements to be completed without the need for litigation. The study's main goal is to determine the demand for escrow payment services on social commerce platforms and online marketplaces such as Olx, etc. The study's goal is to learn about existing consumers' online buying habits and estimate the size of the escrow services industry. The study's secondary purpose is to determine whether or not people are aware of and willing to use a third-party payment provider in their regular online buying transactions. The Research will also aid in determining whether users are willing to pay the platform for such a secure payment option.