Payoneer and Etsy Payments: A Game-Changer for Sellers

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Etsy Payments has partnered with Payoneer to revolutionize how sellers receive payments, extending its services to include countries like Argentina, Chile, China, India, Japan, Peru, Thailand, and Ukraine. This collaboration marks a significant milestone, mandating sellers in these regions to integrate Etsy Payments with a Payoneer Payment Account for smoother transactions. The initiative reflects a strategic move to leverage Payoneer’s extensive experience in facilitating secure, global money transfers, thereby enhancing the payment infrastructure for Etsy’s vibrant marketplace.

This article will delve into the nuances of the Payoneer and Etsy partnership, examining its impact on sellers and buyers within Etsy’s ecosystem. From navigating the sign-up process to optimizing Etsy stores for global sales through Payoneer, the discussion will encompass a range of topics aimed at empowering sellers with tools for success in the global digital economy. Through this collaboration, Etsy and Payoneer are set to offer greater support and seamless payouts to sellers, fostering a more inclusive and accessible marketplace for creative entrepreneurs worldwide.

The Emergence of Payoneer as a Global Payment Solution

Since its inception in 2005 by Yuval Tal, Payoneer has evolved into a pivotal force in the global payment landscape. Initially founded to facilitate easier cross-border transactions for freelancers and small to medium-sized businesses, the company has expanded its services significantly. Today, Payoneer not only offers basic payment services but also provides a comprehensive suite of financial tools including invoicing, billing, accounting, and even advanced security measures to safeguard transactions. This expansion has been supported by substantial investments, with the company raising over $265 million from investors to fuel its growth and technological advancements.

Payoneer’s strategic acquisitions, such as Armor Payments in 2016, and its global expansion efforts, including opening an office in London in 2017, have broadened its operational reach. The company now operates in numerous countries across continents, offering services tailored to the unique needs of various markets. For instance, in Asia and Europe, Payoneer has partnered with major banks and financial institutions to enhance service accessibility and reliability. These partnerships are crucial in regions where traditional banking systems may not fully support the dynamic needs of online businesses and freelancers.

The company’s platform supports transactions in over 150 local currencies, making it a preferred choice for international sellers and businesses looking to engage in global commerce. The integration of a prepaid Mastercard debit card allows users instant access to their funds, further enhancing the flexibility and convenience of managing global transactions. Payoneer’s continuous focus on technological innovation and customer service has positioned it as a competitive player against other financial service providers like PayPal and Wise, offering distinct advantages in terms of speed, currency differentiation, and user experience.

Understanding Etsy’s Global Marketplace

Etsy, founded in 2005 by Rob Kalin, Chris Maguire, and Haim Schoppik, has grown into a global marketplace that connects millions of buyers and sellers from around the world. With a mission to “keep commerce human,” Etsy provides a platform for independent creators to sell unique and handcrafted products. The platform supports transactions in 25 different currencies and offers a translation feature in 13 languages, ensuring that both buyers and sellers can shop and sell in their local language and currency.

The platform’s robust infrastructure supports over 81.9 million items listed by 1.9 million active sellers to a customer base of more than 80 million active buyers. Etsy’s business model focuses on creating a unique, niche marketplace experience rather than competing on price and convenience. This approach has fostered a community where 86% of sellers and 81% of buyers are women, emphasizing Etsy’s appeal to female entrepreneurs and shoppers. Etsy Payments, introduced to sellers in over 40 countries since 2012, allows buyers to choose from various payment methods such as PayPal, credit and debit cards, and Etsy’s own gift cards and credits.

To aid sellers in expanding their global reach, Etsy offers a global seller handbook filled with resources and guidance. The platform’s shipping partnerships with major couriers like USPS, FedEx, and DHL streamline the logistics process, making it easier for sellers to manage deliveries worldwide. Additionally, Etsy charges a nominal listing fee and a transaction fee, ensuring that the costs are manageable for independent sellers. For those looking to further enhance their store’s visibility, Etsy provides an advanced filter system for buyers and an optional premium subscription, Etsy Plus.

The Significance of the Payoneer and Etsy Partnership

The partnership between Payoneer and Etsy signifies a major step forward in addressing the needs of sellers in emerging markets. By integrating Payoneer’s robust global payment infrastructure, Etsy Payments now supports more extensive and diverse market needs, facilitating smoother and more accessible transactions for sellers across various countries. This strategic alliance not only simplifies the payment process but also ensures that sellers can receive funds in their preferred currencies, which is crucial for local economic growth and sustainability.

Expanding Economic Opportunities

  1. Streamlined Seller Payments: With the initiation of this partnership, sellers in countries like Ukraine and Thailand, followed by others such as India and Japan, can now enjoy streamlined payment processes. This setup minimizes delays and reduces the complexities previously associated with receiving payments from international transactions.
  2. Enhanced Access to Global Markets: Payoneer’s platform, supporting transactions in over 150 currencies, allows Etsy sellers to effortlessly expand their customer base without worrying about the hurdles of cross-border payments. This capability is vital for sellers aiming to tap into new markets and achieve global reach.
  3. Empowerment Through Financial Tools: Sellers benefit from Payoneer’s comprehensive financial services, including the ability to withdraw funds using a free Mastercard debit card provided by Payoneer. This feature offers convenience and immediate access to funds, which is essential for managing cash flow effectively in a dynamic market environment.

The collaboration between Payoneer and Etsy is tailored to enhance the e-commerce experience by providing a secure, reliable, and flexible payment system. This partnership not only supports Etsy’s commitment to expanding its global presence but also aligns with Payoneer’s mission to empower entrepreneurs by making complex payment processes straightforward and accessible. With these enhanced capabilities, Etsy sellers are better equipped to manage their finances and grow their businesses on a global scale.

Etsy Payments: Revolutionizing Transactions for Sellers and Buyers

Etsy Payments stands as the cornerstone of Etsy’s payment technology, providing a robust and secure platform that simplifies transactions for both buyers and sellers. This system allows sellers to manage all their financial information in one place, offering tools like Etsy Purchase Protection and dedicated support for financial transactions. Buyers benefit from the flexibility of choosing their preferred payment method at checkout, which includes options like PayPal, credit and debit cards, Etsy Gift Cards, and Etsy Credits. The integration of these features makes Etsy Payments a comprehensive solution that enhances the buying and selling experience on the platform.

One of the key advantages of Etsy Payments is its ability to attract a broader global audience. In 2022, a significant 75% of transactions on Etsy utilized payment methods other than PayPal, indicating a shift towards more diversified payment preferences among users. The system supports various forms of payments, such as credit and debit card transactions, bank transfers, and mobile payment options like Apple Pay and Google Pay. This inclusivity not only caters to local preferences but also streamlines the process, making it easier for sellers to expand their reach to international markets.

Furthermore, Etsy Payments actively contributes to the growth of sellers by providing financial incentives and promotional support. Sellers who adopt Etsy Payments experience an average increase of 14% in sales. Additionally, these shops become eligible for Etsy-funded coupons and may be featured in site-wide promotions, enhancing their visibility and potential customer base. The system also ensures quick and secure fund transfers, with sellers able to see their money deposited into their bank accounts following a straightforward schedule, enhancing their operational efficiency and financial planning.

Navigating the Sign-Up Process with Payoneer on Etsy

To begin setting up Etsy Payments with Payoneer, start by logging into your Etsy account and navigating to the ‘Shop Manager’ located at the top right corner of the page. In the ‘Shop Manager’, locate the ‘Finances’ section in the left sidebar and select ‘Payment Settings’. Here, you can either add Payoneer as a new payment method or connect it if you already have an account. If Payoneer is supported in your region, it will appear among the listed payment options.

Step-by-Step Guide to Linking Payoneer with Etsy

  1. Log into Etsy and Access Shop Manager: Sign in to your Etsy account and click on ‘Shop Manager’.
  2. Navigate to Payment Settings: Under ‘Finances’, select ‘Payment Settings’ and look for the option to add or connect a payment method.
  3. Add Payoneer as Your Payment Method: If available, select Payoneer from the payment options and follow the prompt to either log into your existing Payoneer account or provide details to link new accounts.
  4. Complete Verification: You may need to verify your identity by providing personal and financial information to ensure the security of transactions.
  5. Perform a Test Transaction: It’s advisable to conduct a test transaction to confirm that payments can be processed successfully through your linked Payoneer account.
  6. Review and Save Settings: After linking, review your payment settings and save them to start receiving payments directly into your Payoneer account.

For sellers in specific regions like India, funds are automatically disbursed into the seller’s local bank account in INR, ensuring ease of access and management. Should any issues arise during the setup process, Payoneer’s Support Center is available for assistance, and sellers are encouraged to contact Payoneer directly for help. This streamlined process not only simplifies the receipt of international payments but also enhances the overall selling experience on Etsy’s global marketplace.

Expanding Opportunities in Emerging Markets

The partnership between Payoneer and Etsy marks a strategic move to enhance Etsy Payments by extending its reach into emerging markets, with initial launches in Ukraine and Thailand. This expansion is a testament to Payoneer’s robust infrastructure capabilities, which are crucial in supporting Etsy’s scaling efforts across these new regions. By leveraging Payoneer’s global payment network, Etsy aims to provide seamless transaction experiences for sellers, facilitating easier access to international markets.

Following Ukraine and Thailand, the rollout of Etsy Payments, powered by Payoneer, will continue across other significant markets including India, Japan, Argentina, Chile, and Peru by the end of 2023. This phased expansion strategy underscores a commitment to adapting and meeting the diverse needs of sellers in various geographic locales. The inclusion of these countries not only diversifies the marketplace but also introduces Etsy’s unique products to a broader audience, potentially increasing the economic activity on the platform.

Payoneer’s involvement provides critical infrastructure that is essential for the smooth operation of Etsy Payments in these emerging markets. The collaboration ensures that sellers have reliable access to advanced payment solutions, which is instrumental in building trust and encouraging the growth of their businesses on a global scale. By facilitating transactions in local currencies and offering tailored financial services, Payoneer and Etsy are setting the stage for a more inclusive and economically vibrant marketplace.

Security Protocols and Customer Trust

Ensuring the security of transactions and safeguarding seller funds is paramount for Etsy and Payoneer. Etsy employs third-party services like Plaid to verify seller bank account details, a crucial step before sellers can receive any deposits from their sales. This verification process is mandatory for all sellers, providing an added layer of security by ensuring that all bank details are accurately linked to the rightful owner’s Etsy account.

For sellers whose bank accounts are located outside the US, Etsy allows for the updating of bank details directly within the Payment settings. This flexibility supports sellers from various countries, accommodating different banking systems and currencies. Additionally, in situations where a seller’s bank account operates in a currency different from their Payment account, Etsy requires the upload of a bank statement for further verification. These measures are designed to prevent fraudulent activities and ensure smooth and secure transactions.

Despite these robust security measures, there have been instances where sellers faced challenges with account verification and customer support. These issues highlight areas where Etsy and Payoneer can further enhance their systems to streamline the verification process and improve support for sellers. By continuing to refine these processes, they can strengthen trust among users, crucial for maintaining a secure and reliable marketplace.

Optimizing Your Etsy Store for Global Sales with Payoneer

Payoneer offers Etsy sellers the ability to manage multiple currencies within a single account, significantly enhancing the flexibility for those involved in international sales. This feature is particularly beneficial as it allows sellers to receive and hold funds in different currencies, which can be advantageous in avoiding fluctuating exchange rates. Additionally, Payoneer charges only a 1% fee for currency conversions, which is notably lower than Etsy’s 2.5% fee, making it a cost-effective choice for sellers looking to maximize their profits from global sales.

When setting up an Etsy store with Payoneer, it is crucial to select the country where Payoneer issued the account. For instance, for Euro accounts, the options might include Germany, Britain, or the USA. During the registration process, sellers are also required to upload a document confirming their legal residence in a country where Etsy Payments is supported. This step is vital to ensure that the payment setup is compliant with local regulations and to avoid any potential issues with account suspension. It is important to note that labeling Payoneer as a ‘second tier bank’ might lead to account suspension, as has been the case with almost 90% of Etsy accounts linked to Payoneer in certain instances.

To further optimize the payment setup, sellers should carefully enter their bank details. For example, if a seller has a pound account with Payoneer, the bank associated with it might be listed as ‘Barclays Bank’. It is essential for sellers to inform Etsy during the setup process that Payoneer issued the account, even though the bank name does not indicate this. Miscommunication in this area could lead to complications, such as the blocking of the Etsy account. By addressing these details accurately, sellers can ensure a smoother integration of Payoneer with their Etsy store, facilitating secure and efficient transactions that support their business growth on a global scale.


Throughout this exploration, the synergy between Payoneer and Etsy has emerged as a significant development in the e-commerce and global payments landscape, particularly for sellers in emerging markets. By integrating Payoneer’s robust financial services and global reach with Etsy’s expansive marketplace, this partnership enables sellers to access a wider customer base with enhanced efficiency and security in transactions. The discussion has underscored the multifaceted benefits of this collaboration, from streamlined payments and financial empowerment for sellers to the broadened accessibility for buyers across different regions.

As we reflect on the implications of this partnership, it’s clear that the future of online selling and cross-border transactions is on a path of continual innovation and improvement. The strategic alliance between Payoneer and Etsy not only facilitates economic opportunities but also reinforces the vitality of global commerce. By providing a seamless, secure, and inclusive platform, they are setting new standards for what is possible in empowering creative entrepreneurs and expanding marketplaces. The journey of optimizing e-commerce experiences and expanding financial inclusivity is ongoing, and the Payoneer-Etsy partnership stands as a pivotal chapter in this evolution.


1. Is Payoneer an accepted payment method on Etsy?
Yes, Etsy collaborates with several licensed payment providers including Worldpay, PayPal, Adyen, and Payoneer to process card payments and other types of transactions, as well as to disburse funds to sellers across various countries. The specific payment provider used and the processing time may differ depending on the country of the seller.

2. What is the payment process for sellers on Etsy?
Etsy Payments is the primary method for sellers to receive payments on Etsy. This system allows buyers to use various payment methods to make purchases. Sellers receive their earnings through direct deposits either to their bank account or to their Payoneer Payment Account, depending on the seller’s location and if it falls within the eligible countries for Etsy Payments.

3. Can Etsy sellers use PayPal to receive payments?
Yes, sellers on Etsy can link their PayPal account when setting up their shop. This enables customers to use PayPal for their purchases. Additionally, sellers have the option to utilize Etsy Payments, which supports various payment methods including credit and debit cards, Etsy Gift Cards, and Etsy Credits.

4. How can I receive payments from clients using Payoneer?
To receive payments via Payoneer, enter your client’s email address and the amount they need to pay. Submit this payment request, and Payoneer will notify your client. The client will then select a password and their preferred payment method. Once the payment is made, the funds will be deposited into your Payoneer account, from where you can use them directly or withdraw them.


Jack Quy

About Author

Jack Quy is the founder of, a site dedicated to providing insights into freelancing and blogging from his own experience since 2009. His blog is full of great tips and strategies for all things related to working as a freelancer and blogger. No matter your level of experience, these invaluable hints and advice will help you reach your objectives. Be it if you're beginning in the industry or already have some working knowledge, this information is sure to be useful.

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