Following the collapse of Silicon Valley Bank, Etsy is warning sellers that the company may take longer than usual to process some payments. “We wanted to let you know that there is a delay with your deposit which was scheduled for today,” Etsy told affected merchants on Friday in an email the company shared with . “Please know that our teams are working hard to resolve this issue and get your funds to you as soon as possible.”
An Etsy spokesperson attributed the delay to “the unexpected collapse of Silicon Valley Bank,” noting that the company used the bank to facilitate payments to some merchants. They added that Etsy was working with other payment partners to facilitate deposits. The company expects to pay the affected vendors “within the next few business days.” Over 7.5 million merchants use Etsy to sell their products online.
Federal regulators took control of SVB on Friday amid the biggest banking meltdown since the 2008 financial crisis. With its close ties to Silicon Valley, SVB’s failure has reverberated across the industry technological. On Friday, Roku said it could , or more than $487 million, due to the collapse. A day later, the value of USD Coin, a US dollar pegged stablecoin, after Circle, the company that handles the currency, revealed it had $3.3 billion locked in the bank. While the value of the USD Coin has largely recovered, the news nonetheless raised fears of possible financial contagion within the cryptocurrency industry.
More importantly, there are many people whose next paycheck will not arrive on time. Including and small business owners who depend on Etsy for their livelihood. A salesman, Owen McKinney, said BNC News the delay in filing could have a “catastrophic” effect on his business.
The rest is hard to say. On Sunday, US Treasury Secretary Janey Yellen said the federal government would not bail out SVB and instead focus on helping depositors. “Let me make it clear that during the financial crisis there were investors and owners of large systemic banks that were bailed out…and the reforms that have been put in place mean we’re not going to do it again” , Yellen said. “But we are concerned about depositors and are working to meet their needs.”