Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

Categories faq: Cross Border

What types of transactions can be facilitated by a cross-border escrow service?

A cross-border escrow service like Castler’s Digital Identifier system can facilitate various types of transactions between parties located in different countries. These transactions can include the sale and purchase of goods or services, international trade deals, and even real estate transactions. The escrow service acts as a neutral third party that holds the funds until the terms of the transaction are met by both parties. This ensures that both the buyer and seller are protected from fraud or non-payment. The escrow service can also help with the transfer of ownership of assets, such as intellectual property or domain names. By using a cross-border escrow service, parties can have peace of mind knowing that their transaction is secure and that they are protected from any potential risks associated with international transactions.

How can cross-border escrow services benefit import-export businesses?

Cross-border escrow services can benefit import-export businesses in several ways. Firstly, it provides a secure and reliable payment method for both parties involved in the transaction. The buyer can be assured that their payment is held in a secure account until the goods are received and verified, while the seller can be confident that they will receive payment once the goods have been delivered. This reduces the risk of fraud and non-payment, which is particularly important when dealing with unfamiliar parties in different countries.

Secondly, using an escrow service can help to streamline the transaction process, reducing the time and costs associated with traditional payment methods such as wire transfers or letters of credit. This can be particularly
beneficial for small businesses that may not have the resources to navigate complex international payment systems.

Finally, using a Digital Identifier system like Castler can provide additional benefits such as real-time tracking of the transaction and automated dispute resolution. This can help to further reduce the risk of fraud and ensure a smooth and efficient transaction process for both parties.