E-commerce in Nigeria keeps thriving, and it’s probably because payment on delivery is an option most online merchants make on their platforms. There is a low level of trust (on the part of customers) that exists here, but not many people talk about how this affects the sellers. Many times, people order items with the pay on delivery option and cancel on a whim or go AWOL on the day the item is to be delivered.

It’s the merchants that bear the costs of these disappointments, and a few are of the opinion that customers behave this way because there is little to no commitment on their part – because nothing of the customer’s is at stake, they don’t feel obliged to commit. This is a problem LockMyCash hopes to solve.

LockMyCash is an online escrow service that protects both merchants and their customers from fraud when making online transactions. It acts as a third party that holds payments from a buyer and doesn’t release it to the seller until the buyer is satisfied with the purchase. Essentially, it prevents a case where any of the parties feels dissatisfied or slighted at the end of a transaction.

How it works is, users create transactions – either as a buyer or seller – and fill in the necessary information regarding that transaction. This includes the name and description of the item, phone number and email address of the other party involved, cost of transaction, transaction and inspection period, and who pays the fee charged by LockMyCash (it can be split 50/50).

When a customer makes a payment, the merchant is notified and is expected to deliver within the period that was agreed. After the buyer receives the item, they are expected to inspect it within the period that was agreed and they state if they are pleased or not. If they are, they buyer gets paid. If they aren’t, they’re to return the item and get a refund.

As you may have already guessed, LockMyCash charges a fee for every transaction. A minimum of N200 and maximum of N5000, depending on the value of the transaction. This shouldn’t be a problem, though, seeing as users get to decide who will bear the cost.

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