Friend to Friend payments from Facebook is bad news for Etsy.

Facebook payments are fantastic for the continued disruption of centralized services and markets such at Etsy. By lowering the friction of friend to friend payments Facebook is setting itself up as the easiest way for people to settle up.

Recently my wife started a small enterprise doing something that she loves, painting little wooden peg people.

She started by making Christmas presents for our kids and a birthday present for her niece, then started a page on facebook and finally went through the hoops and challenges of creating an Etsy store.

So in the 3 months since starting it she has had 9 times more sales from facebook then she has had on Etsy.

The growth potential for etsy can be significantly diminished by Instagram and facebook accounts.