What does escrow actually mean?
You already know the risky version. A seller on Instagram or WhatsApp says "transfer first, I'll deliver." You send money to a personal account, and now everything depends on a stranger keeping their word. If they ghost, the money is gone, and screenshots of the chat rarely bring it back.
Escrow removes that leap of faith. Instead of paying the seller directly, you pay a neutral middle, which holds the money while the deal happens. The seller knows the money is real and secured, so they deliver with confidence. You inspect what arrives, and only when you confirm you got what you paid for does the middle release the money to the seller.
On Loota, that neutral middle is Loota itself, and the whole deal runs inside a protected deal room where the chat, proof, payment and deal record stay together in one place.
What does the Loota flow look like from start to finish?
The whole thing happens on WhatsApp and in one secure deal room. No app to download, no account to create. Here is the full journey from asking to the seller getting paid:
- Ask on WhatsApp. Message Loota with what you want, like "clean UK-used iPhone 13 in Surulere".
- Offers come to you. Loota pings nearby matching sellers, they answer a quick YES/NO, then send real offers with price, condition and proof. Offers usually start landing in minutes, and searching is free.
- Pick an offer. Loota sends you a secure link to a protected deal room where chat, proof, payment and the deal record all live together.
- Pay into escrow. Your money goes to Loota, not the seller's personal account, and it stays held until you confirm.
- Seller delivers. On risky items, the seller has already given camera-only live proof: fresh photos or video shot on the spot, because old or stock photos don't pass.
- You confirm. Check the item properly. When you are satisfied, confirm in the deal room.
- Seller gets paid. Loota releases the money to the seller only after your confirmation.
When is escrow required, and when is it optional?
Escrow is required on the categories that get faked a lot: phones, laptops, consoles and generators. These are the deals where too-good prices and box-of-stones stories are most common, so Loota does not leave protection to chance there.
On everything else, escrow is optional, and either side can ask for it. Buying something small from a seller you already trust? You might skip it. Buying a used appliance from someone new? Ask for escrow. Sellers can ask too, because it protects them from buyers who vanish after delivery.
What does escrow cost?
Searching and receiving offers on Loota are free. The only fee is a small protection fee when a deal actually uses escrow, and it is split between both sides: the buyer pays 40% of it and the seller pays 60%.
Both sides get something for it. The buyer's money is protected until they confirm, and the seller ships to a committed buyer whose payment is already secured. Nobody pays anything just to browse, ask around or receive offers.
What happens if there's a dispute?
First, your money does not move. Because it is held in escrow, a dispute means the money stays in the middle while the case is reviewed, instead of sitting in someone else's account while you argue.
Disputes are reviewed on the deal room's own record: the actual messages, the proof the seller submitted and the payment events, all in one place. That matters because it is not a screenshot contest. Screenshots can be edited; the deal room record shows what was actually promised, shown and paid.
How does escrow protect sellers?
Escrow is not just a buyer shield. For a seller, the worst outcomes are a buyer who orders and disappears, or one who collects the item and then claims they never got it. With escrow, the money is already held before you ship, so you know the buyer is real and funded. And because delivery and confirmation happen on the deal room record, a false claim runs straight into the evidence.
Sellers also get matched buyer requests straight on WhatsApp, a shareable storefront link, and the option to complete business verification for a Verified badge. Payout comes after the buyer confirms, which is exactly what makes buyers comfortable paying up front in the first place.
