Tazapay, a digital escrow service for cross-border trade, has announced the launch of its Escrow-as-a-Service offering. This comes as Tazapay forms strategic partnerships with 8 global business-to-business (B2B) marketplaces in order to further ease and enable international trade, with over 20 platforms reportedly being ready for activation over the coming weeks.
Escrow is a term that defines a legal arrangement in which a third party temporarily retains large sums of money until a particular condition has been met, such as the fulfillment of a purchase agreement for example.
B2B e-commerce marketplaces are designed exclusively for buyers and sellers who typically trade in bulk or specialised goods. Tazapay, which holds funds securely in escrow until shipments are verified, is operationalising trust for marketplaces by helping them provide services to their users in areas where they’ve typically been underserved. One of these areas is payments, in comparison to consumer platforms which typically offer shoppers several payment and shipping options.
Given the large transaction sizes taking place on B2B marketplaces – many of which are between cross-border buyers – there are specific requirements when it comes to compliance, regulation, verification, and so on. These platforms have struggled to find or build tools that solve issues including reducing the risk of non-shipment; ensuring trade-compliant movement of money across borders; and verification of trade documents to prevent fraud.
By integrating its full-stack payments solution with B2B marketplaces, Tazapay is addressing each of these challenges. It also supports milestone payments, allowing businesses to break up large payments for each step of the transaction. Marketplaces can customise this feature to suit their users’ needs, and with Tazapay, can offer global payment coverage via multiple currencies and payment options.
“Our new marketplace partners serve a critical role as the first stop for SMEs looking to purchase either large quantities of certain items or highly specialised goods, and we know how much they value the ability to find these products and begin discussions with trading partners,” said Rahul Shinghal, CEO of Tazapay. “Completing large B2B transactions can become complex across borders, and we’re pleased to integrate a solution into these platforms that not only makes verification and payment easier, but that also automatically builds trust between businesses and between platforms and their users. We’re glad to help remove these pain points so that our partners can maintain their focus on serving and growing their customer base.”
The platforms initially going live with Tazapay are:
- Bluerickshaw – A curated B2B export platform connecting small artisans and manufacturers from India to small and midsize buyers across the world.
- Complete Farmer – Agricultural commodities for African sellers from Ghana, Nigeria, and Togo to global buyers across Asia, the Americas, and Europe.
- ConstrucShare – Construction materials marketplace serving Singapore businesses, with an aim to expand regionally.
- Engineering Edge – Singapore based fasteners manufacturer building a marketplace to bring transparency, efficiency, and quality into a $10B industry.
- Maalexi – A platform that allows faster, cheaper, and safer ‘Wholesale Import of Food and Agriculture products into Europe, India, and Africa’ by simplifying cross-border trade.
- Madeinindonesia – Indonesian B2B eCommerce for digital exports which simplifies International sourcing and procurement from and within Indonesia.
- OneAgrix – Singapore-based agricultural commodities for Asian sellers and global buyers across Asia, the Americas, and Europe.
“We’ve built a community of organisations coming together to propel their business operations, yet we’ve long been aware of the complexities of international trade- everything from naming the terms of a deal to verifying paperwork to making payments in multiple currencies,” comments Raihan Ali, COO of OneAgrix. “Tazapay is the ideal solution to help our users streamline this last piece of the trading puzzle and the simple integration means that they can easily stay in the platform environment they’re familiar with to perform any necessary background checks and easily make and receive payments. We’re sure that our continued partnership with Tazapay will help us in turn grow our own foothold with our current and prospective users.”
Akshay Wadhwa, CEO of Bluerickshaw, adds, “Our target customers are small to midsize businesses across the world and they face two key obstacles – establishing trust and the high costs associated with export transactions. We are excited to partner with Tazapay who are perfectly aligned with our vision of addressing both problems by offering small businesses credit, reducing overall transaction costs, and providing a trusted, secure payment solution.”
It’s reported that Tazapay will be integrating with an additional 20-plus marketplaces in the coming weeks. Integration will be taking place via API integration and plugins on major e-commerce platforms such as Magento and WooCommerce.