Etsy have renamed ‘Direct Checkout’ to ‘Etsy Payments’ and are now requiring that all sellers sign up to their newly named checkout flow.
Previously, Etsy have allowed sellers to add their own PayPal account or other payment methods. Now they are requiring all payments, including PayPal, to go through their own checkout.
Because we want buyers to have a consistent experience when they check out on Etsy, we’re requiring that all sellers in eligible countries set up Etsy Payments by the 17th May, 2017. If you don’t set up Etsy Payments, your selling privileges will be suspended on the 18th of May.
If you’re already using Etsy’s payments platform, there’s nothing you need to do. If you only accept payments through PayPal or manual payment methods, you’ll need to set up Etsy Payments by connecting your bank account and verifying your identity. If you currently have standalone PayPal in your shop, you can still choose to keep your PayPal sales separate.
Etsy justify the move saying that buyers want more ways to pay and Etsy Payments gives them many options, including PayPal, Apple Pay, and Etsy gift cards. Some sellers have only offered PayPal in the past, but Etsy Payments means that all sellers in qualifying countries will now accept credit cards and mobile payment methods such as Google Pay and Apple Pay.
According to a 2016 Etsy analysis, in countries where Direct Checkout was available, active sellers using Etsy Payments saw more than twice the revenue (on average) of active sellers not using Etsy Payments.
Etsy will deposit all sales into your bank account in your local currency, no matter how buyers pay. You can get paid daily, weekly, biweekly, or monthly. Request additional deposits anytime. All sales processed with Etsy Payments will also qualify for the Etsy Seller Protection Policy.
Sellers will be disappointed by the move as there are fees to pay on Etsy Payments – typically between 3% and 4% plus a flat fee. The cost varies by country but for UK retailers is 4% + £0.20 per transaction.