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

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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 U.S. government shutdown of the bank last week.

Etsy and Shopify each work with 5.4 million and 1.75 million online merchants respectively worldwide, mostly small-to-medium size businesses.

"It was a nail biting situation until I checked my bank account this morning," the 3D-printed seller from Central Ohio said, adding that Etsy is currently his only source of income. Etsy said it communicated with any seller who was impacted on Friday directly via email and posted an update in their forums on Saturday.Shopify Chief Executive Tobi Lutke said in a tweet on Saturday that the company was seeing "very minor impact" from the SVB collapse.

Shopify Capital, an arm of Shopify that provides loans and cash advances to its merchants, has been impacted by SVB's closure, according to the company's website. Merchants are not able to view their loan offers or see their loan repayments as of now.

 

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It's snowballing to every sector of America.

Etsy has become the scum of the marketplace. It needs to be taken to the puppy farm.

Contagions spread.

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