US-based fintech firm LiquidTrust has announced the launch of Micro Escrow Pay, its patent-pending first instant escrow payment solution designed for small and midsize businesses (SMBs).
The company also closed a $4m seed funding round, led by Anthemis Female Innovators Lab Fund, Resolute Ventures, and Motivate Ventures.
The payment solution is designed to enable secure transactions between businesses, vendors, and customers while mitigating risks of fraud and nonpayment.
With escrow embedded within the payment flow, the solution addresses challenges, such as upfront payments without guarantees and delivery of services without assured payment.
LiquidTrust will offer the solution directly to SMBs through its banking partners.
LiquidTrust founder and CEO Saujin Yi said: “SMBs are the backbone of the global economy, driving $14 trillion in B2B payments annually.
“Yet two-thirds of this volume remains unprotected because existing solutions, like letters of credit or traditional escrow, are too costly or complex for small businesses.
“We’ve built a streamlined, bank-enabled solution that reduces payment risk at the source. With Micro Escrow Pay, SMBs no longer have to choose between trust and growth.
“Trust risk isn’t just a financial problem—it’s a growth killer. By making escrow as smooth as credit card payments, we empower SMBs to expand their supplier and customer networks globally and reduce fear of nonpayment or fraud.”
LiquidTrust said that its advanced payment solution protects payors and payees in real-time, eliminating the need for separate contracts, third-party accounts, or legal frameworks.
The company is working together with leading financial and technology firms, to expand its global payments infrastructure.
LiquidTrust has selected JP Morgan as its primary operating bank, for their embedded finance platform to facilitate secure, escrow-backed payments for SMBs worldwide.
