Sellers,

After a smooth and productive beta test, we're very happy to announce the full public release of functionality that allows you to pay your Etsy bills via PayPal. You will now see an option for PayPal under "Method of payment" when you go to Your Etsy > Your Etsy Bill > Make a payment.

When you select PayPal as your method of payment on this screen and click "Submit Payment," you will be taken to PayPal. Log into PayPal to complete the payment. You will be directed back to Etsy upon completion of the transaction.

Paying your Etsy bill with PayPal is optional. You can still pay your Etsy bill via the credit card you have on file with Etsy. Regardless of whether you pay your Etsy bill with PayPal or credit card, Etsy sellers need to keep a valid credit card on file with Etsy because we require a valid credit card to become an Etsy seller at this time.

With this release we are also removing the minimum payment amount for seller fee payments, whether paid by credit card or PayPal. Previously, Etsy only accepted payments of $1 or more from sellers. This is no longer the case—Etsy sellers will be expected to pay their bills in full regardless of the amount. So, if you are billed $0.60, you can now pay $0.60, and you have the option to pay via PayPal.

We'd like to thank all the beta testers for their valuable feedback. Here are answers to some frequently asked questions.

Can I pay my bill with my PayPal account?
Yes. Go to Your Etsy > Your Etsy Bill, select the PayPal option and click the green button that says Submit Payment. You will be directed to PayPal and prompted to log in to your PayPal account. Log in, review your payment and click “Pay Now”. You will then be redirected back to Etsy to conclude the transaction. If you pay via PayPal eCheck, your payment will be held as "Pending" until the payment clears, and your bill balance will not change until your payment is cleared.

Can I pay my bill with my PayPal account directly, without signing into Etsy?
No. You must pay your bill by signing in to Etsy and going to Your Etsy > Your Etsy Bill.

Is there a minimum amount I must owe Etsy before I can pay my bill?
No. There is no minimum amount you must owe Etsy before you can pay your bill. If you are billed $0.20, you can pay $0.20. You have the option to pay your bill via PayPal or with the credit card you have on file with Etsy. Etsy sellers are expected to pay their bills in accordance with our collection policy.

Do I have to use the PayPal account I use to accept payments on Etsy to pay my bill via PayPal or can I use another PayPal account?
You can pay your Etsy bill with any PayPal account you like.

Can I sign up as a seller on Etsy with a PayPal account, and use that to pay my fees?
No. Etsy accepts PayPal as a way to pay your bill but we still require a valid credit card to become an Etsy seller.

Etsy says my payment is "Pending." Why? How long will it remain pending?
A “Pending” status results when a payment is made with  PayPal eCheck. eCheck payments are usually made when your PayPal account does not have a balance, and does not have a secondary backup funding source associated with it. eCheck payments made from a PayPal account associated with a U.S. bank account will be held as pending for 3-4 business days. eCheck payments made from a PayPal account associated with a bank account outside the U.S. will usually be held as pending for 7-8 business days. When the electronic funds transfer clears your bank, the payment will be completed, and your Etsy bill balance will be updated accordingly.

We hope you find this feature convenient. Let us know what you think in this dedicated discussion thread in our Forums. We will be sending an email out to all Etsy sellers regarding these changes before the next billing cycle.

ps
If you want to get the breaking, vital Etsy news as it happens — delivered straight to your email inbox, then sign up for Etsy News Alerts emails. Read more about it here.  Expect this as an Etsy Alert email in your inbox if you already subscribe to the list.

You can also get an RSS feed of all TechUpdates here.