Layby is a Kiwi institution for spreading the cost of retail purchases. Escrow solves a different problem: making a payment safe when money and trust cross paths. They sound similar - both involve paying before you get the goods - but they protect very different things.
| Feature | Escrow (wlbr) | Layby |
|---|---|---|
| What it is | Your payment is held on trust and released when you approve what you're paying for. | You pay a retailer in instalments and collect the goods once fully paid. |
| What it protects | The buyer's money until the work is done or the goods check out - and the seller, who can see the money is real. | Mainly the retailer's cash flow; the buyer's protection is the retailer's refund policy. |
| When you get the goods or work | Straight away - the money is already secured, so work or handover can start immediately. | Only after the final instalment clears. |
| Works for services and jobs | Yes - designed for tradies, freelancers, deposits and milestones. | No - layby is a retail goods arrangement. |
| Works for one-off private deals | Yes - cars, boats, marketplace purchases between strangers. | No - only where a retailer offers it. |
| Cost | Flat 2% per payment, GST-inclusive. | Usually free - it's a payment plan, not protection. |
| Best for | Any payment where trust is uncertain - services, deposits, secondhand deals. | Spreading the cost of retail goods you can't pay for at once. |
Layby is a budgeting tool for retail shopping - handy, but it protects the shop more than you. Escrow is protection: it makes paying for work, services, or a one-off deal with a stranger safe for both sides. Different tools for different jobs.
Where the money sits
Bank to trust to bank - never anywhere else
Create a payment link in about a minute. No monthly fees, no lock-in - a flat 2% per protected payment.
Get started