Adana guide · 6 min read
What Is an Escrow Service?
A clear explanation of what an escrow service is, how it works, and why buyers and sellers use escrow for safe online transactions.
Published 25 July 2026
An escrow service is a trusted third party that holds money until both sides finish their part of a deal. Think of it as a secure middle account: the buyer pays in, the seller delivers, then funds are released.
Escrow is common for high-value or low-trust situations — online marketplaces, freelancers, vehicles, electronics, and business transactions — wherever one party would otherwise take all the risk.
The basic escrow flow
1) Agree on the deal and create an invoice. 2) Buyer funds escrow. 3) Seller provides goods or services. 4) Buyer confirms receipt (or delivery is verified). 5) Escrow releases payment to the seller.
If conditions are not met, money can stay locked while a dispute is reviewed — far safer than arguing after a completed bank transfer.
Escrow vs “I’ll pay you later”
Without escrow, either the buyer pays first (buyer risk) or the seller delivers first (seller risk). Escrow balances both: payment is proven before handoff, and release waits for confirmation.
Adana applies this model to African commerce and logistics — including delivery verification so release is tied to a real handoff, not just a chat message.