Etsy ‘payments delayed’ by Silicon Valley Bank collapse

Payments at online marketplace Etsy are reportedly being delayed by the collapse of Silicon Valley Bank last week.

The e-commerce business has warned sellers on the platform that there will be delays in processing payments because it relies on the bank to facilitate disbursement to some of them, according to an email from the company which was shared with NBC News.

The UK government and the Bank of England (BoE) announced this morning they had brokered a rescue deal to sell the UK division of the collapsed bank to HSBC.

"We wanted to let you know that there is a delay with your deposit that was scheduled for today," said the email to sellers, as reported by the news website. "We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them.”

Etsy assured its sellers it is working on resolving the issue and plans to send funds as quickly as possible.

The company expects to settle its overdue payments through its other payment partners over the next few business days.

Etsy recently recorded revenue growth over nearly 13 per cent to just over $807 million in the fourth quarter of 2022.

The figures, published in February, came as online marketplace revealed it is nearly three times the size it was pre-pandemic.

The company’s chief financial officer Rachel Glaser said that its strong holiday performance and accelerating GMS compared to three years ago enabled the business to end on a “high note”.

One area of growth has been its purchase of Elo7, one of Brazil’s top e-commerce sites, for $217 million.

Last year, the company also announced plans to buy London-based peer-to-peer marketplace Depop for $1.6 billion.

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