Etsy started processing seller payments through its other payment partners this morning following the collapse of Silicon Valley Bank, the company confirmed to AapkaDost. On Friday, the online marketplace warned sellers in an email that the collapse of Silicon Valley Bank caused delays in processing payments and that a solution was being worked on.
A company spokesperson told AapkaDost in an email that the issue has affected a small group of merchants, noting that about 0.5% of the active merchant base had their payments delayed as of Friday. Etsy is working to pay these sellers today and has already started processing payments through another payment partner this morning.
“At Etsy, supporting our sellers is our top priority, and we understand how important it is for these small businesses to receive their money when they need it,” the spokesperson said. “We recently experienced a delay in issuing payments to some merchants in connection with the unexpected collapse of Silicon Valley Bank. Our teams have been working around the clock to implement a solution. We expect to pay merchants through our other payment partners and will begin processing those payments from March 13.”
Many Etsy sellers rely on the revenue they receive from selling products on the platform, and after learning that those scheduled payments were impacted by the bank’s collapse, sellers said yes putting their stores in “holiday mode”. until the situation was resolved.
The drama with Silicon Valley Bank started last Thursday when the bank announced it would raise additional capital by selling shares. Venture firms then began advising portfolio companies to withdraw money from the bank. On Friday, the California Department of Financial Protection and Innovation took over and closed the bank to protect deposits. The Federal Reserve issued a joint pair of statements Sunday, noting that Silicon Valley Bank’s depositors, both insured and uninsured, will receive assistance in a way that will “fully protect everyone.”
The implosion marked the largest US bank failure since the global financial crisis more than a decade ago. The fallout affects a range of startups and larger companies, including publicly traded companies such as Roku, Roblox, Quotient and others.