E-commerce company warned merchants about possible payment processing problems."We wanted to let you know that there has been a delay with your deposit scheduled for today," the company commented, saying that it is taking all possible steps to resolve the problem and pay out funds as soon as possible. Etsy is working with other payment partners to ensure necessary payments.
As of early 2023, there were 7.5 million sellers registered on the platform. Several have noted that a delayed payment could have a "catastrophic" impact on business. In the absence of payments, sellers would be unable to pay for the purchase of new materials and the delivery of goods. Etsy still needs to provide sellers with timelines for crediting the funds.
Silicon Valley Bank's problems began after the bank announced a $21 billion stock sale and attempted to raise more than $1 billion from investors for "general corporate purposes." Such moves caused concern among investors and depositors, who began withdrawing their deposits in an emergency.
SVB stock plummeted more than 60 percent last Thursday and continued to fall the next day, after which the regulator closed trading on the exchange. The bankruptcy was the largest in the banking sector since 2008 and the second largest in history after the bankruptcy of Washington Mutual.