how much of the gig economy's labor payments moved through SVB? Door dash, Uber, etc. those companies suck ass, but their precarious workers could very well get caught out. even one day's pay could be catastrophic.
and what about our lovely private "money apps* in the US? any exposure there?
Digital funds are transferred via banks. The bank that Etsy uses to transfer funds no longer exists.
What do you expect them to do?
I guess my question is “Why is the bank that should simply be transferring funds doing things that can allow it to go out of business?” And also, “Why is it sitting in the transfer bank long enough to be a problem?”
The path the money should take is buyer’s bank > card processor > seller’s bank (and Etsy’s cut to Etsy’s bank). I’ll accept buyers bank > card processor > temporary transfer space > seller and Etsy’s banks, but why is that transfer space at risk? That transfer space shouldn’t be doing anything that could result in failure, it’s just a number in a spreadsheet.
The only way Etsy shouldn’t be able to pay sellers is if they also can’t accept payments, and they still shouldn’t owe any sellers money except the ones who sold items in like, the 30 seconds before SVB closed, because they should’ve already given it over.