EcommerceBytes-NewsFlash, Number 3138 - August 26, 2013     2 of 5

Etsy Suppresses PayPal - Test or Glitch?

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Etsy users are reporting that the marketplace is hiding the PayPal option on shops that accept Etsy's own payment processing system called Direct Checkout. While users can't tell if it's a glitch or if Etsy is running a test, sellers are upset at the thought their shoppers are having to jump through hoops to pay for a purchase. In fact, some sellers say they have turned off Etsy's Direct Checkoff in protest.

Opting in to Direct Checkout allows sellers to accept credit cards, and Etsy also offers a Seller Protection program for transactions processed through its the program. It is also the only way for sellers to accept Etsy gift cards for purchases.

Etsy has always allowed sellers who opt in to Direct Checkout to offer other payment methods as well. But reports started coming in from users in this Etsy thread on Saturday from buyers who said they were not being shown PayPal as a payment method when purchasing items.

Sellers responded and began testing their own shops. "Last night a potential buyer contacted me and said she put an item in her cart and wanted to purchase it," wrote one seller, "but she did not want to pay by credit card and wanted to know why I didn't accept PayPal. If this is not a bug, I will be forced to discontinue DC, because well over half of my sales are PayPal transactions."

Another seller reported it in the "Bugs" section of the forums. "I tried in 2 shops to purchase something while using my Android tablet. In both instances, when I went to checkout, the only choice I had was to use DC. Both shops accept PayPal if you look at them using a desktop computer. Bug or test," he asked.

"Answers are often painfully slow on weekends," wrote a seller on the thread.

"But we are all here and The site keeps running. Would be nice if the upped the weekend staff," another user responded.

Some are reporting that they see the option to pay with PayPal on their desktop computers but not on their mobile devices. EcommerceBytes sent an inquiry to Etsy on Sunday afternoon and has yet to receive a response.

Update 8/26/13: Etsy confirmed the PayPal suppression was a test. Please see this Newsflash story to learn more.

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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