By MyBankTracker  Updated on Tue Sep 4, 2012

Etsy’s Gets Crafty With Payments

Etsy, online purveyor of all things twee, is proving to be crafty in more ways than one. The handmade and vintage online marketplace has launched its own proprietary payments system this year, called Etsy Direct Checkout, and in an effort to push more merchants toward accepting the PayPal-like system, Etsy is selling gift cards and running a promotion. All Things D reports:

[Etsy] will start selling gift cards to consumers in October that can only be used with Direct Checkout-enabled stores. The site will also waive all credit card processing fees in September for Direct Checkout stores. Sellers still pay listing and transaction fees like normal.

Of 800,000 active shops on Etsy, 100,000 are now Direct Checkout enabled. It’s only available for U.S. stores, though, and Etsy doesn’t break out how many stores are in which region. Direct Checkout stores apparently see increased conversion and sales — in part because buyers don’t get lost when they wander off site to pay. The stores have processed $50 million so far.

According to the story, Etsy owes its payments savvy to Camilla Velasquez, formerly of American Express — no stranger to payments innovation themselves.

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