Etsy Expands Payments Platform Internationally
By Ina Steiner
Etsy is expanding its Direct Checkout feature that lets buyers pay Etsy, which then forwards the payment to the seller. The feature is similar to Amazon's model, but is optional for sellers. Etsy announced this week it was rolling Direct Checkout to over a dozen more countries.
Calling it the first step towards a global payments platform on Etsy, the company said, "This launch to 15 additional countries represents the first phase of this goal, and rest assured that we're planning to offer more payment methods and add more countries."
In response to questions about which other payment methods Etsy would accept, the company explained, "In some countries, such as Germany and the Netherlands, credit cards or PayPal are not the preferred methods of payment." Etsy is looking at services that facilitate real-time, secure bank transfers, for example.
Many marketplaces started out using eBay's early model of letting buyers and sellers work out payment details amongst themselves. But Amazon's model of collecting payment on behalf of sellers has proven appealing to marketplaces, since it offers increased transparency into transactions that can also aid in resolving disputes between buyers and sellers.
Etsy is rolling out Direct Checkout to sellers in Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Norway, Netherlands, New Zealand, Sweden, Switzerland and UK. Buyers will be able to checkout with credit cards and debit cards in nine new currencies (AUD, CAD, CHF, DKK, EUR, GBP, NOK, NZD and SEK).
Like services such as PayPal or credit cards, Direct Checkout payment processing fees are assessed on the full price (including shipping and sales tax) of the transaction. Etsy deducts the payment processing fees from the funds that sellers have available for deposit and said transaction and listing fees are still applied separately to their Etsy bill.
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 email@example.com.
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