Etsy Launches Free Mobile Payment Dongle

I confess, I've never met an Etsy seller in real life. That's not to say they don't exist—that would be a bit silly. It's just that most of the times I've shopped on Etsy for something, the transaction has been entirely virtual: I fire up my credit card, I wait a few days, and some beautifully designed package arrives in the mail with a beautifully designed item inside.

If you're an Etsy seller who also maintains a real-life storefront—or just wants the ability to sell the neat trinkets you've brought along to a friend's party in person—then a brand-new device from the online crafts marketplace might be worth investigating. Etsy is jumping into the mobile payments world with a brand-new tool that allows sellers to accept credit and debit card payments via a dongle that attaches to an Android or iOS device.

"We've worked hard at Etsy to develop a leading online marketplace for buying and selling unique goods. However, 90 percent of all retail purchases are still made offline. We know that many of our sellers sell in channels other than their online Etsy shop. In fact, 35 percent of Etsy sellers sell at craft fairs. That's why we're launching in-person payments today to provide better tools for sellers who sell at craft fairs, flea markets, and elsewhere," reads a blog post from Camilla Velasquez, Etsy's director of payments and multichannel sales.

That bit isn't especially novel, given that you can get dongles from all sorts of different payment services right now. However, Etsy's version comes with a clever hook for those who make use of the site to sell items.

"With the reader and Sell on Etsy app, sales made in person are immediately reflected in the Etsy shop even if buyers pay with cash. The seller's online inventory is adjusted automatically so that items are not unwittingly oversold. Every sale made through the reader counts towards the total sales numbers for the Etsy seller's shop and items sold from listings are also eligible for buyer feedback," Velasquez writes.

Additionally, payments made via the dongle—be they credit cards scanned, or cash payments inputted—will also allow buyers to receive detailed receipts from sellers, if they desire. That might not sound like the most interesting of feature offhand, but it gives sellers a chance to showcase additional wares that a particular purchaser might like.

As for the reader itself, the dongle will be free to anyone who wants one. Credit card payments will come with a 2.75 percent fee; however, those making in-person sales won't have to pay the normal 3.5 percent transaction fee Etsy slaps on top of online sales.

Meanwhile, another mobile payment option, Square, launched its Square App Marketplace today. There, Square users can access all the apps that integrate with the service, including Intuit QuickBooks, Xero, Stitch Labs, IFTTT, TaxJar, SumAll, Fresh KDS, Shopseen, and ShipStation.

"Whether you're looking for easy sales tax reporting and filing with TaxJar, a wireless kitchen display system with Fresh KDS, or a comprehensive view of your social and online marketing efforts alongside sales with SumAll, you can find business apps that sync seamlessly with your Square account," Square said.

These announcements come as Apple also launched its NFC-enabled mobile payment solution. For more, check out How to Use Apple Pay and the video below.

Also see some cool vintage gadgets available on Etsy in the slideshow above.