Etsy, other e-commerce companies feel squeeze of SVB collapse

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NEW YORK: Etsy on Monday (Mar 13) resumed payments to merchants with Silicon Valley Bank accounts after the e-commerce platform paused their payouts over the weekend following the US government shutdown of the bank last week. Approximately 0.5 per cent of Etsy's active sellers - or around 2,700 merchants -

NEW YORK: Etsy on Monday resumed payments to merchants with Silicon Valley Bank accounts after the e-commerce platform paused their payouts over the weekend following the US government shutdown of the bank last week.

The payments Etsy sellers received is unrelated to the Federal Reserve's Sunday announcement, which ensured that SVB's customers would have access to their funds on Monday. Some Etsy sellers decided to put their stores on vacation mode, pausing customer purchases in an effort to minimize their financial losses while others say they have received their payments on schedule.

Etsy merchant Elizabeth Thompson, 57, said she has received little guidance from the company on what transpired. "We use SVB as one of 12 or so banks spread over mostly Canada and US," Lutke said, adding"a small portion of our US operational fund flows is tied up in SVB but we are working around it and it should be business as usual."

"Shopify expects to resume all operations for Shopify Capital in the United States within the next few days," the company said on its website.

 

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