Etsy and Paypal: How You Get Paid and Other Alternatives

PayPal is a key part of the Etsy marketplace, as it provides a safe and simple way for customers to buy things online and help sellers get their payments quickly.

Let’s take a look into the relationship between Etsy and PayPal and how you can get paid on Etsy through other options, such as Wise, which helps Etsy sellers save money.

How do you get paid on Etsy and save along the way?

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Does Etsy accept PayPal?

Yes, Etsy and PayPal are partners, which means that you can use PayPal to buy items from Etsy merchants.

When setting up your shop on Etsy, you will be prompted to enter your PayPal account information in order for customers to pay for their purchases. Once set up, buyers can pay with either their credit cards or through a PayPal account when placing an order from your store.

Looking for another way to get paid on Etsy?

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Wise and Etsy >>

How customers pay with PayPal on Etsy

When a customer is ready to buy on Etsy, they can select the PayPal option¹ during checkout (if available in their country). They will then be taken to the PayPal website, where they can log in with their account information and complete the payment process.

Once the payment has been processed, Etsy will receive a notification from PayPal that the transaction went through. The funds will then be deposited into your bank account according to your payment schedule settings.

What is Integrated PayPal?

Integrated PayPal lets you accept payments in real-time from your checkout page, so customers don’t have to leave the Etsy website. Buyers get a seamless buying experience without the security risks that come with redirecting them from your site.

While the standard Etsy Payments Payment Processing Fee is applied to these types of orders, there’s no extra fee.²

What is Standalone PayPal?

Standalone PayPal is an alternative to Integrated PayPal for sellers that don’t have Etsy Payments in their country.³ This option gives customers the same seamless buying experience as Integrated PayPal. But, sellers will receive money from PayPal purchases right into their PayPal account.

The downside of Standalone PayPal is that it isn't covered by the Etsy Purchase Protection program. So buyers or sellers won’t be protected in case of disputes or fraud. You’ll ultimately be responsible for making sure that all payments are made securely and resolving any issues that may come up.

What are Etsy Payments, and how do they work?

Etsy Payments is Etsy’s own payment processing service that can be used to accept payments from customers. Unlike PayPal and other third-party services, Etsy Payments offers seller protection in case of disputes or fraud.

When you sign up for Etsy Payments, buyers can choose to pay with either a credit card or through a PayPal account when checking out from your store. All transactions will be processed by Etsy directly, so you don’t need to worry about setting up a separate PayPal account or dealing with extra fees.

Etsy Payments vs PayPal Direct

If you are looking for an alternative to accepting payments through PayPal, Etsy Payments is another good option. Using a direct PayPal account can come with more fees – we're talking extra international percentage-based fees and more – and currency conversion charges. On the flip side, Etsy Payments has a straightforward processing fee depending on the country – % of the total sale price + a flat fee per order.⁴

Besides the savings on processing fees and currency conversions, there are also features such as seller protection and dispute resolution services. This makes it easier for buyers to trust your store when making purchases online.

How to Use PayPal on Etsy

If you're enrolled in Etsy Payments, and PayPal is available in your country, buyers can pay for items from your shop using PayPal. Your sales funds will go straight into your payment account on Etsy instead of appearing in your PayPal account. This means you won't have to manage money in more than one place.

As well, say a buyer files a dispute through PayPal while it's part of Etsy Payments. Etsy will work on the seller's behalf to sort it out without direct participation from the seller. This is just like how they manage credit card chargebacks with Etsy Payments.

How else can you get paid on Etsy? 7 Great Payment Options

While Etsy buyers often use PayPal for all transactions, there are other payment alternatives too. Let's take a look at them here.

1. Wise Business and Etsy: Get paid easily and transparently

With global marketplaces like Etsy, you can now access customers from all over the world. But, if customers are paying in their own currencies, you’ll likely have to deal with expensive currency conversion fees. Let's take a look at how Wise Business can help you earn more.

With a Wise Business account, there’s a smarter way to avoid currency conversion costs. Simply link your Wise Business account details to your Etsy account and transfer earnings for free – no more high exchange rates or hidden fees.

Using the mid-market rate, you'll always get the real exchange rate. And, with Wise, every transfer is tracked and viewable in one place – so you can keep on top of your payments.

Wise Business could be a real money-saver for your Etsy shop. Start today with no monthly fees.

Setting up your USD account details on Etsy (More details here):

1. Get USD account details
2. On the Etsy site or Sell on Etsy app, select Shop Manager
3. Click Finances and Payment settings
4. Then go to bank details, select Update
5. You may need to confirm your bank information if you haven’t done it before
6. Add your USD account details from your Wise account
7. Etsy might send 1 or 2 small deposits to your Wise USD account to verify that you own the account. This can take 3–7 days, and you’ll need to go to Etsy and confirm the amounts received by going to Finances > Payment account > Verify account.
8. You've finished! Now you can get paid in USD from Etsy.

Set up a Wise Business Account
in minutes 👍

2. Credit cards

Credit cards are the most commonly accepted payment option for Etsy stores. It’s easy to take credit card payments on Etsy by setting up a merchant account with either Stripe or Square. With these services, buyers enter their credit card information directly into Etsy. Then, funds are deposited into your bank account within one to three business days.

3. Debit/bank cards

There are several services available that allow you to accept debit and bank cards, including Stripe, Square, and Adyen. These platforms have a similar easy setup process as credit card options. A bonus? You’ll also get funds straight into your bank account within one to three business days.

4. Etsy Gift Cards and Etsy Credits

Etsy Gift Cards and Etsy Credits are two options for buyers to use when purchasing items from your shop. Whether printed or online, you can accept payments from buyers who don’t have a credit card or bank account. This is also a fantastic option for those who would rather not share their payment information with sellers.

5. Apple Pay

Apple Pay is a payment option for buyers who own Apple devices. It uses the same security protocols as credit cards for secure payment on Etsy. And for those who worry about entering any personal information, you’ll be happy to know this isn’t required.

6. Google Pay

Google Pay is a payment option for buyers on Android devices, whether using the Android mobile app or using a browser. It has just as much security as Apple Pay, giving customers the confidence they need.

7. Klarna installment payments

Klarna is a payment option that lets buyers from Australia, Spain, the UK, and the US pay for their purchases on Etsy in installments.⁵ Buyers can choose the amount of time they want to spread out their payments interest-free. Klarna will process each payment automatically until the total is paid off.⁶

Learn More:

How much does it cost to sell on Etsy in 2023?
Best Bank Account for Etsy Businesses
How to pay contractors through PayPal