Yes, it uses a 2-of-3 multisig escrow by default. The third party is selected on an open marketplace.
You have the choice between direct payment transactions which is more risky and should only be used between known parties and then there is a 2 of 3 party multisig escrow transaction that allows a moderator to be an arbitrator for problems and funds are only released if 2 of the 3 parties agree.