How SMBs can utilize secure escrow payments
As a small- or medium-sized business (SMB) provider, manufacturer, or independent contractor, you are dedicated to, and passionate about, your work. You enjoy being your own boss, making your own hours and having ownership over your product. What you want to do most is focus your resources and skills on your craft and satisfy your clients. Because you have an entrepreneurial spirit, you may know a thing or two about economics. You may understand that significant periods of global economic growth and social advancement have been attached to new inventions or technologies referred to as General Purpose Technologies (GPT). Due to the countless consumer applications of GPTs in society, these inventions continue to reshape the global economy and increase productivity in virtually every major industry. The most recent GPT affecting the global economy, blockchain technology, is expected to transform the recording and management of domestic and international eCommerce transactions. One example of a financial blockchain technology that is powering and enabling global trade is the escrow system. SMBs looking to grow and compete more effectively on a global scale need to be taking advantage of the escrow system when conducting B2B transactions.
The need for SMBs to establish trust
In the world of eCommerce, businesses conduct transactions with customers, clients and colleagues every day. As an SMB owner, you want to ensure that these transactions run smoothly and, for the most part, you may not have trouble verifying their validity because you are familiar with the businesses and people you conduct transactions with and you trust them. But as you expand and engage in transactions on a global scale, with people you have not met and businesses you are not familiar with, verification and networking require a third party, such as a broker. This becomes costly, presents security issues and gives too much power to the third party, in the form of market share and information.
Escrow systems provide key reassurances
Escrow systems provide the benefits of a traditional intermediary, offering secure and verifiable international payments and settlements, at a reduced expense and risk. Buying and selling is matched and validated through a platform. The buyer pays money into a secure escrow account. The seller ships the product once the money is deposited. The buyer inspects the product and, if satisfied, releases the funds. Privacy is maintained because only specific information is necessary to conduct the transaction. Information is stored and accessible at no extra cost in the case of a dispute or audit. The ease with which businesses can join an escrow system and the reduction of risk has made the global marketplace more accessible and competitive. This is good for SMBs. Escrow systems also foster innovation and creativity with less friction, as the barriers for SMBs to enter an international marketplace alongside larger, entrenched competitors are lowered.
As with other GPTs, infrastructure, business models and cultural norms are transforming because of blockchain technology. In order to compete in today’s digital global marketplace, it makes sense for SMBs to take advantage of this transformation sooner rather than later. In a utopian setting an escrow system would not need an operator. But international transactions are regulated differently in different countries. SMB owners operating globally need to know that their escrow partner understands and is keeping abreast of changes to these regulations and is licensed to conduct these transactions. A partner who provides speed, compliance, clarity of terms, global availability, simple dispute resolution, and multiple currencies. Payoneer is that partner.
Through our escrow system, buyers procure products securely, while sellers protect their businesses and ensure getting paid. Businesses conduct transactions with our licensed service in 200 markets and transact in more than 150 currencies. Our multilingual customer care team provides support 24 hours a day, 7 days a week. And payments can be made using credit card, wire, ACH and eCheck. Get started today and give yourself more worry-free time to focus on your business and share your product with a larger audience.