This week, Bitcoin reached an all-time high of $107,000, leading luxury brands to open up to cryptocurrency payments to attract crypto investors and tap into new wealth.
In the past, only a few luxury brands, Gucci and Balenciaga, provided limited crypto payment facilities. The growing popularity of Bitcoin, however, inspired retailers.
Reuters reported that there are now companies jumping in this trend. Printemps, for example, has become the first European department store to accept cryptocurrencies. This was done possibly by partnering with major crypto exchanges such as Binance and Lyzi to fully support Bitcoin and Ethereum payments.
Besides Printemps, other luxury brands, including S.T. Dupont and Virgin Voyages, are also in line with this trend. So far, most high-end businesses are eyeing this innovative method to "hopefully" reach the younger, tech-savvy client base.
Luxury Brands to Consider Bitcoin Payments
For now, cryptocurrencies are still considered volatile, especially with regulatory challenges in other countries besides the US. But this won't stop the luxury industry from remaining relevant.
Other luxury brands, particularly those owned by large conglomerates like Kering, are adopting a "test and learn" approach to new technologies to give room to younger customers, especially in Asia, who may prefer alternative payment methods over traditional ones such as PayPal or Venmo.
Largely, one of the many reasons why brands are using crypto payments is to mark it as a branding tool in order to position themselves as more forward-thinking than others. Balenciaga, for instance, has recently launched a limited-edition leather cardholder designed to hold a crypto wallet, which would indicate the brand's intention to attract crypto-savvy consumers, The Economic Times mentioned.
Adopting cryptocurrencies by luxury brands is an important point in the intersection of high-end retail and the digital age. Because brands are testing new forms of payment options, the trend may be another wave of shifts in how customers shop for luxury goods and in how the brands interact with their clientele.
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