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Etsy Requires US Sellers to Verify Bank Accounts

Etsy will be requiring sellers on its platform to either self-verify their bank accounts or do it through a another platform, so as to comply with anti-money laundering regulations, Reuters wrote Friday (Aug. 26).

This has been a sticking point for sellers — several told Reuters that the recommended method would include providing financial technology platform Plaid with their banking username and password.

Etsy also reportedly provided an option to self-verify, though some found it “tedious.”

Plaid last year agreed to pay $58 million to settle a case alleging it had used peoples’ financial information without consent. But the company has said it’s looking to provide a “secure experience” for users.

One seller critiqued Etsy for having a “history of less-than-stellar communication and customer service contributes to a general lack of trust in Etsy.” A transaction fee increase at the site also provoked negative reactions earlier in the year. And some users have said they may quit the platform over the various issues.

Even with the derision, though, Etsy reported 6 million new buyers in Q2 and a 10% increase in revenue in spite of the current economic conditions, PYMNTS wrote.

Read more: Etsy Boasts 6 Million New Buyers in Q2 Results

The company said the rate of new buyers was “meaningfully elevated” from pre-pandemic levels. CFO Rachel Glaser said the revenue for the quarter had come from changes the company made, such as the transaction fee increase, along with adding Depop and Elo7 to its brand portfolio.

And CEO Josh Silverman said the results from that quarter showed that Etsy had kept up with the gains it made during the pandemic.

“Despite facing headwinds caused by macroeconomic and geopolitical factors, we believe the improvements we’ve driven in customer experiences across the Etsy marketplace and our House of Brands, coupled with continued focus on our ‘Right to Win’ strategy, will enable us to unlock the enormous long-term opportunities we see ahead,” he said.

NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPSAbout: The findings in PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed the responses from 9,904 consumers in Australia, Germany, the U.K. and the U.S. and showed strong demand for a single multifunctional super apps rather than using dozens of individuals ones.

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