E-commerce marketplace Etsy is setting its sights on the real world, entering the crowded mPOS market with its own app and card reader combo.
Etsy has had huge success offering a space for people to set up virtual store fronts where they can sell handmade and vintage items.
However, the firm notes in a blog post, 90% of all retail purchases are still made offline and around a third of its own sellers still go out to craft fairs to hawk their wares.
To take advantage of this, Etsy is launching a free card reader than can be attached to iOS and Android devices to accept in-person card payments. The reader is magstripe, despite the US's rapid adoption of chip and PIN, and the firm charges a 2.75% fee - cheaper than the 3.5% it takes for online sales.
The reader is only for Etsy sellers and the company claims that the app works seamlessly with users' virtual shops. Sales are immediately reflected in the Etsy shop even if buyers pay with cash with the online inventory adjusted automatically.
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.
Although Etsy is targeting its existing sellers, it is still entering a crowded mPOS market filled with powerful rivals such as Square, PayPal and Amazon.
Square is itself trying to integrate itself more tightly into sellers' businesses with the launch of an app marketplace where its Register users can find applications that sync with the firm's technology.
Since launching its software partner platform a year ago, Square has added apps from Intuit QuickBooks, Xero SumAll and others designed to help make running a small business easier. The new marketplace will put these offers in one place.