The eCommerce platform announced this week that it was expanding its Etsy Payments service to sellers in Thailand and Ukraine, with plans to include Japan, Chile, Argentina, Peru and India (export sales only) in the coming months.
“To make this all possible, we’ve partnered with Payoneer, a secure payment processor that makes it easy to get paid in your local currency,” the announcement said.
According to the announcement, Etsy Payments lets buyers pick their preferred payment method when checking out. Depending on which market they’re in, buyers will now have access to various local payment methods like PayPal, credit and debit cards, Etsy Gift Cards, Etsy Credits and more.
“And buyers love having payment options,” the company said. “Last year, we found that 75% of Etsy transactions used a payment method other than PayPal.”
And there’s a risk in not offering local payment methods, as PYMNTS noted earlier this year in a conversation with Andy McHale, senior director of product at Spreedly, and Adrian Burgess, head of strategic growth at PPRO.
“For the U.S. and large parts of Europe, we tend to think of credit cards as the primary method of paying for things, whether that’s in person or online,” McHale said. “But that doesn’t work for every individual, every ecosystem, every region on the planet. You’ve got your digital wallets, PayPal, Apple Pay, Google Pay. You have your bank account and direct debit as well.”
And preferred payment methods can be as varied as the regions themselves. Burgess pointed to a few of the local preferences that PPRO runs into, each of which comes with its own quirks with which merchants must handle.
“While Americans still love paying by card — around 60% of all eCommerce transactions in the U.S. are made with cards — Polish shoppers prefer bank transfer payment methods like BLIK, while in Brazil, cash-based payment methods are favored. It’s therefore essential that merchants offer the right mix of payment methods to their consumers if they don’t want them to abandon the checkout.”
Etsy’s efforts to grow in new markets come as the company is facing pressures in the U.S. During the company’s most recent earnings call, Chief Financial Officer Rachel Glaser said the reinstatement of student loan payments and the discontinuation of child tax credits during the fall season could potentially impact sales in the third quarter.
“Over the last few years, Etsy has gone from a period where we grew tremendously with so many tailwinds at our back, to a period of stiff headwinds and uncertain macroeconomic conditions,” said CEO Josh Silverman. “Consumers continue to make very tough choices on where and how to spend their money, and we’re fighting hard to help our sellers get their share.”