Gumtree adds new tech to better secure P2P payments

Spend enough time online and you’ll come across more than a few horror stories around online classified sites. In a bid to cut down on those kinds of issues Gumtree South Africa has added Shepherd, a Standard Bank-powered escrow service, to its list of endorsed partners.

Shepherd operates as a third party that facilitates transactions on behalf of sellers and buyers and is offered as an option to Gumtree customers.

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“The process is fairly simple,” explains Martin Reynolds of Shepherd. “Either the buyer or seller can request dealing through Shepherd. After the seller initiates the transaction, the buyer makes a payment into a secure trust account. Shepherd secures the funds until the buyer receives the item and accepts it and facilitates the delivery through Ram couriers. The buyer simply signs the courier waybill to accept the delivery if she is satisfied with the item. Shepherd then releases the funds to the buyer. If the buyer isn’t satisfied, the item is returned to the seller and the buyer’s payment refunded.”

“Classifieds are immensely popular, but there are risks associated with trading online, such as meeting someone in person that you don’t know, handling cash or the risk of non-payment after delivery,” says Johan Nel, Country Manager of Gumtree SA. “It’s our belief that, while millions of South Africans are already prolific traders online, there are as many who want to participate but are wary to do so. We want to remove those barriers and offer safe alternatives to the conventional face-to-face interaction.”

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According to Nel, while the vast majority of Gumtree customers are well-versed in online safety to allow them to transact without incident, Shepherd adds that additional peace of mind.

“At Standard Bank we view safety and security as a top priority for our customers,” says Craig Polkinghorne, Head of Business and Commercial Banking at Standard Bank. “We found it fitting to support Shepherd’s escrow service as it aligns with Standard Bank’s commitment to constantly deliver safe and convenient banking platforms and solutions to customers. Shepherd simply eliminates the payment risks associated with online shopping, enabling the buyer and seller to focus on completing the transaction.”