The rapid rise in Bitcoin’s value has sparked growing interest among luxury brands and retailers, who are beginning to adopt cryptocurrency as a payment option to attract wealthy crypto investors and foster loyalty among tech-savvy clientele.
Until recently, only a select few luxury brands, including LVMH watchmakers Hublot and Tag Heuer, as well as Gucci and Balenciaga under Kering, have experimented with accepting crypto payments.
However, the trend is gaining momentum. Upscale French department store Printemps recently partnered with Binance, the world’s largest crypto exchange, and French fintech firm Lyzi to allow customers to pay with cryptocurrencies like Bitcoin and Ethereum in its French stores. Printemps is the first European department store to offer this option, prompting interest from other luxury retailers.
“There have been quite a few calls — it’s generated interest,” said David Princay, president of Binance France, adding that talks are underway with other high-end brands.
Luxury goods maker S.T. Dupont also plans to introduce cryptocurrency payments at two Paris locations before the holidays.
Even the luxury travel sector is embracing crypto. Virgin Voyages recently launched its first product accepting Bitcoin—a $120,000 annual pass for unlimited sailing on its cruise ships.
Balancing Risks with Innovation
While regulators have long warned about the risks and volatility of cryptocurrencies, a shift in sentiment appears to be emerging. Blockchain innovation in financial markets is helping to stabilize cryptocurrencies, according to analysts at S&P Global Ratings.
For luxury brands, integrating crypto payments is less about practicality and more about signaling innovation. Andrew O’Neill, digital assets lead analyst at S&P Global Ratings, noted, “Offering cryptocurrency payments helps brands shed the image of being outdated or catering only to older generations.”
Most retailers convert crypto payments into traditional currencies like euros or dollars to minimize volatility risk. Meanwhile, for crypto investors benefiting from Bitcoin’s climb—recently surpassing $107,000—luxury goods like designer handbags or watches offer a tangible way to diversify their wealth.
Designer Labels Join the Trend
High-end brands are also exploring crypto-centric designs. Balenciaga recently released a €350 ($368) leather cardholder designed to accommodate Ledger’s “Stax” crypto wallet hardware, which retails for $399. The accessory includes a keychain, Eiffel Tower charm, and NFC chip, reflecting a growing fusion of fashion and technology.
Gucci has been at the forefront of this shift, accepting 10 cryptocurrencies for purchases in the United States since 2022. Printemps, meanwhile, plans to expand its crypto payment service to its upcoming Wall Street location in New York City, set to open in March.
Aiming for Younger and Global Customers
Luxury brands are increasingly focusing on younger and Asian shoppers, for whom digital technology is central. Gregory Boutte, Kering’s Chief Client and Digital Officer, describes the group’s strategy as “test and learn” rather than “wait and see.”
For some crypto investors, however, traditional luxury retail channels remain less appealing. Eunice Wong, an investor and influencer known as ”Eunicorn,” has used cryptocurrency to purchase high-end watches but prefers the efficiency of secondary markets over in-store experiences.
“I want it now,” Wong said, emphasizing the need for convenience over traditional sales processes.
As Bitcoin’s value continues to soar, luxury brands are betting on cryptocurrency to redefine their appeal and reach a broader, digitally inclined audience.
Featured image from: businesstoday.com