Online classifieds website Gumtree South Africa will introduce a third party service to their peer-to-peer transaction model.
This is in an effort to improve financial security and to protect the sites users from other increasing criminal elements.
Standard Bank's third party site, 'Shepherd', known as an escrow service, will facilitate transactions on behalf of both parties.
According to General Manager of Gumtree SA Johan Nel, 'Shepherd' will not release any money until obligations have been fulfilled by both parties.
The payment is secured in a trust account and a satisfied buyer signs a courier waybill to accept the delivery, releasing the funds to the seller.
If the buyer is not satisfied with the delivered goods, the courier returns the item to the seller and the buyer’s payment is refunded.
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This article first appeared on 702 : Gumtree to introduce third party service in a bid to improve trading safety