Etsy has launched a free credit card reader, in an attempt to hook sellers who want to complete transactions in the real world.

The reader, which is similar to Square's credit card reader, works with Android and iOS devices. Sellers must use the Etsy square reader in conjunction with the Sell on Etsy mobile app, enabling them to accept credit card and debit card purchases for their goods in person.

Etsy's reader lets you sell items both listed and not yet listed through Etsy. The company said a third of the US-based sellers using its online shop also sell their products at craft fairs. The Etsy reader should help streamline how they transact with customers going forward.

There is no Etsy transaction fee for in-person sales, though there is a credit card processing fee of 2.75 per cent per swipe (or 3 per cent plus $0.25 if the card number is manually entered). Cards from Visa, MasterCard, American Express, and Discover are all accepted.

At the moment, only US-based sellers can request a card reader, download the app, and use the reader at no cost. There are no sign up fees or monthly minimums. The idea is that you will simply use the Etsy reader and app to collect money for your purchasable goods.

Money from your in-person sales will appear in your Shop Payment Account, alongside your online sales. Etsy said it will deposit funds directly into your bank account every Monday, but you can request earlier deposits via your Shop Payment Account.

If you live outside of the US and want to use the Etsy reader, Etsy promised to expand availability soon.