ESCROW SERVICES ,
Mortgage services offered by e-commerce platforms like Qoo10 have been questioned by the settlement delays.
Mortgage services are used to aid secure transactions by letting a third party hold the funds until certain requirements are satisfied, such as when an item is delivered.
E-commerce platforms frequently act as mortgage brokers for online buying. The app or escrow agent will assist in the successful transfer of funds to the appropriate party in the event that a transaction fails.
” It protects the vendor from non-payment by the customer and it protects the consumer from faulty goods or products not as marketed”, explained , Professor Thompson Teo, a part of the Department of Analytics and Operations at the National University of Singapore’s Business School.  ,
Payment services can also be used to resolve disputes over a purchase.
According to Prof. Teo, one of the drawbacks for buyers is that they may abide by the terms of the e-commerce system, which may change over time. Additionally, payment delays or extra charges may occur.
Mr Toh, the Qoo10 seller who is owed about S$ 13, 800, said he hopes for more rules to be put in place for e-commerce programs.  ,
He noted, for instance, that there is no current law governing how much an e-commerce system can carry obligations due to its sellers.  ,
Mr. Toh claims that Qoo10 used to make his company’s regular payments from income impossible. However, as time went on, his time was later extended to days and then weeks.  ,
He continued,” As a vendor, we are unable to do anything because it’s exactly what they say,” adding that concerns about what programs might use the money while they are held in payment.  ,
” The deal that is going through the software on a daily basis is very large. It’s in million”, he said.  ,
“( In ) one day, they can do a bit with our money… let alone two weeks”.
VENDORS HOPE FOR MORE Help
In response to MAS’s statement on September 23 explaining the decision to suspend pay services, more merchants may be exposed to the risk of higher outstanding debts and potential losses.
” Qoo10 will be permitted to make repayments to meet outstanding claims by such retailers, but may not take on new transaction responsibilities”, it stated.
It added that Qoo10 , may need to employ a third-party payment service provider for deals on the system.
When Qoo10 is able to convince MAS of its ability to resolve the settlement difficulties and safeguard the interests of its clients in Singapore on an ongoing basis, the disqualification will be reviewed, it said.
Some sellers believe that authorities can do more to assist impacted vendors in recovering their income, in addition to preventing further losses.
Mr Liu, who is owed more than S$ 21, 000, pointed to the position in South Korea where two Qoo10 subsidiaries failed to pay their vendors. The government it stepped in to provide assistance, for as low-interest funding for affected small businesses.  ,  ,
He anticipates suppliers in Singapore receiving comparable support or other measures.  ,
Mr. Dave, who sells office supplies and devices on Qoo10, expressed his frustration at the lack of clarity regarding the situation.  ,
” There’s no news from Qoo10 … Nobody knows anything at this point in time”, he said.  ,
The system owes him nearly S$ 100, 000 and the more than 30 letters he sent to the business have gone unanswered. He is now unsure as to whether to wait for the income or to consider it to be a reduction as a result of this.  ,
Hopefully,” anyone with a certain power can actually act for anyone, so that everyone knows what to expect,” said Mr. Dave.  ,
” From that, we can actually walk on”.