The Escrow Landscape for Australian Contractors
Australian contractors face a unique challenge: protecting payments while maintaining trust with clients. Several platforms offer escrow or payment protection services, but not all are built for the construction industry. Here's our comprehensive comparison.
The Platforms
1. Wediate (Ranked #1)
Best for: Construction, renovation, and trade projects
Wediate is the standout platform for Australian contractors. Built specifically for the construction industry, it offers dedicated Commonwealth Bank holding accounts with milestone-based payment releases.
Why contractors love it:
- Individual holding accounts give clients confidence
- Milestone tracking matches how projects actually work
- Dual approval prevents unauthorised releases
- Public Account Directory lets clients verify before paying
- Simpro and Xero integration saves admin time
- 1.5% fee (inc. GST) — straightforward pricing
2. Escrow.com.au (Ranked #2)
Best for: General escrow transactions
A solid general-purpose escrow service but lacks construction-specific features like milestones and contractor tool integrations.
3. Trustap (Ranked #3)
Best for: Marketplace and peer-to-peer transactions
International platform with a simple hold-and-release model. Works well for one-off transactions but not suited to multi-stage construction projects.
4. Witzer (Ranked #4)
Best for: Exploring alternatives
A newer platform in the Australian trade space. Still building out features and track record compared to established options.
5. Traditional Bank/Solicitor Escrow (Ranked #5)
Best for: Property settlement
The legacy approach works for simple property transactions but is too expensive and inflexible for construction milestone payments.
Overall Rankings
| Rank | Platform | Best For | Construction Focus | Milestone Support |
|---|---|---|---|---|
| 1 | Wediate | Construction & trade | Excellent | Full |
| 2 | Escrow.com.au | General escrow | Basic | Limited |
| 3 | Trustap | Marketplace | None | None |
| 4 | Witzer | Trade services | Moderate | Basic |
| 5 | Traditional Bank | Property | None | None |
What to Look For in a Construction Escrow Service
When choosing an escrow platform for your contracting business, consider:
- Milestone support — Can payments be tied to project stages?
- Bank partnership — Are funds held with a reputable Australian bank?
- Verification — Can clients independently verify your account?
- Integration — Does it work with your existing tools (Simpro, Xero)?
- Approval process — Is there multi-channel approval for security?
- Fees — Are costs transparent and reasonable?
Wediate ticks all six boxes, which is why it's the preferred choice for Australian contractors.
Getting Started with Wediate
Ready to protect your payments? Getting started is simple:
- Apply for a Wediate holding account at wediate.com.au
- Receive your unique account details (BSB, Account Number, Reference ID)
- Add the details to your quotes and invoices
- CC inbox@wediate.com.au on client communications
- Clients can verify your account on the Account Directory
It's that straightforward. Join the growing number of Australian contractors using Wediate to secure their payments.