Etsy Launches Card Reader for In-Person Payments

Online crafts marketplace Etsy is moving further into the offline world. This past week the Company announced the launch of an Etsy card reader product designed for sellers who want to take credit and debit card payments in person. The move is centered around Etsy’s larger goal to become a one-stop shop for creative business owners who are often marketing their goods in the real world – at farmer’s markets, pop-up shops, parties, etc., in addition through their own personal outreach efforts. Etsy’s blog states that, “90% of all retail purchases are still made offline,” and the ability to receive in-person payments will, “help Etsy sellers be more efficient in what they’re already doing in multiple sales channels.”

The card reader follows Etsy’s recent launch of Etsy Wholesale, a service that connects sellers to with qualified retailers around the U.S. and beyond, who can help sellers who are looking to expand and scale their businesses to a larger consumer base. According to Etsy, “this expansion (the card reader) reiterates our commitment to create a world of online and offline powered by Etsy, making Etsy an everyday experience.”

The new reader product puts Etsy up against a number of rivals, including Square, PayPal, and other card reader providers, as well as companies focused on local businesses, like Groupon (which also sells a card reader!). Similar to other card readers, Etsy’s reader is shipped for free to interested sellers enrolled in Direct Checkout. Payments processed through the reader are priced at 2.75% per swipe (the same as Square) and don’t include additional transaction fees.

However, unlike these other card readers, Etsy’s product is designed to work in conjunction with its online marketplace. Etsy’s card reader posts funds directly into the seller’s “Shop Payment Account,” to make accounting easier. Payments for products made with the card reader will also work with the seller’s online shop to sync and manage inventory in real-time, so online buyers aren't trying to purchase things that have already been sold in person. Additionally, Etsy’s card reader’s emailed receipts include links back to the seller’s Etsy shop, images of other products, and feedback tools – effectively turning the receipt into a marketing tool which can re-engage buyers after the sale is complete.

Etsy stresses that the “card reader and app isn’t a ‘commodity point-of-sale’ system, but one that’s been designed with the needs of its own sellers in mind, to help them grow their businesses, increase sales, boost their reputation, and better manage their businesses as a whole.”

Sources: Etsy, TechCrunch