Marketplace Pulse Etsy research has already found over 260,000 Etsy shops suspended during the last week, when Etsy started to enforce the previously announced switch to Etsy Payments.

Last quarter Etsy announced to have 1.8 million active shops, this rush of suspended shops won't affect that number soon, since it counts any shop active in 12 months. But it might have impact in the future.

"Beginning today, we are suspending sellers’ listings if they haven’t added Etsy Payments. With thousands of sellers and listings to suspend, it may take our system a few days to process. If you see that your listings are suspended and you believe that they shouldn’t be, please contact us as soon as possible: www.etsy.com/help/contact"

In April Etsy renamed "Direct Checkout" to "Etsy Payments", and announced that it will require all sellers to sign up for the service, or have their shop suspended. As of May 31st, 2017 all sellers in eligible countries must be enrolled in Etsy Payments.

While previously Etsy allowed sellers to add their own PayPal account or other payment methods, now all payments have to go through Etsy Payments.

This change has received much criticism from many existing shop owners, as Etsy forums filled up with complains, however Etsy has continued to execute the change.

Consolidating payment options under one Etsy Payments service is the right decision for Etsy, and shops will have to adapt.