This looks like a good initiative, however in my opinion holding funds in escrow is required only when there is a counter party default risk. Point to ponder upon is, "Is there any counter party default risk from a seller? and if there is, is it even worth purchasing from such a seller?"
Buyer Protection is not only defined by successful delivery of products, but also by delivery of correct product with expected quality. A better buyer protection would be initial check and continuous monitoring of seller product delivery and quality at random times.
Also, How would successful delivery be tracked by Freecharge? If it is based on customer discretion, there could be cases where consumer is misusing this to return products or claim non receipt.