PARIS – The surge in Bitcoin\’s value has captured the attention of luxury fashion brands and retailers, sparking increased interest in accepting cryptocurrencies as a payment option. This move aims to attract new wealth sources and strengthen loyalty among crypto investors. Until recently, only a few luxury brands, including LVMH, watchmakers Hublot and Tag Heuer, and Kering-owned brands like Gucci and Balenciaga, had experimented with offering crypto payments. However, in recent weeks, the upscale French department store Printemps announced a partnership with Binance, the world\’s largest crypto exchange, and French fintech company Lyzi to accept Bitcoin, Ethereum, and other cryptocurrencies. This makes Printemps the first European department store to adopt crypto payments. With Bitcoin’s rising value, other brands and retailers are now expressing interest in following suit. “There have been quite a few calls—it\’s generated interest,” said David Princay, president of Binance France, adding that the company is in discussions with additional luxury labels.
S.T. Dupont, a luxury maker of lighters and pens, told Reuters it plans to accept cryptocurrency payments in two of its Paris stores before the holidays. Meanwhile, cruise company Virgin Voyages began offering a $120,000 annual pass, valid for unlimited sailing on its ships, as its first product that accepts Bitcoin payments.
Despite regulators’ warnings about the high-risk nature of cryptocurrencies, and the challenges posed by their volatility for widespread adoption as payment methods, recent developments have sparked optimism. Support from figures like U.S. President-elect Donald Trump, who is expected to push for more favorable cryptocurrency regulations, has contributed to Bitcoin’s record-breaking surge. S&P analysts note that blockchain innovations in financial markets could make cryptocurrencies more predictable, further aiding their acceptance.
Seeking Innovative Branding
Luxury brands have long aimed to attract affluent shoppers from the tech sector by opening stores in high-end Silicon Valley malls and collaborating on products like the Hermes Apple Watch, which merges the craftsmanship of the French brand with Apple’s technology. The recent surge in Bitcoin wealth has come at a time when the luxury sector is facing one of its biggest downturns and is seeking new sources of growth.
By offering cryptocurrency payments, luxury brands can position themselves as innovative, appealing to younger consumers rather than being perceived as outdated. “It’s a way for companies to brand themselves as progressive, rather than just catering to older generations,” said Andrew O’Neill, digital assets lead analyst at S&P Global Ratings.
However, for now, cryptocurrency payments are largely symbolic. Retailers typically convert the funds back into euros or dollars to avoid the risks of volatility. Additionally, payment methods such as PayPal and Venmo are already widely accepted, making the need for alternative payment options less urgent for most shoppers. Still, for Bitcoin investors who have seen substantial gains, luxury goods like designer handbags or high-end watches are an attractive option for diversifying their portfolios.
In a sign of growing interest from luxury labels, Balenciaga recently released a leather cardholder designed to hold “Stax” hardware from crypto wallet company Ledger. The accessory, priced at 350 euros ($368), includes a keychain, an Eiffel Tower charm, and an NFC chip beneath the brand logo. Ledger’s Stax Crypto hardware, a high-end model with a curved touch screen, retails for $399, while its “Flex” model, resembling a small Kindle, is priced at $249, and the more basic “Nano” version is available for $79.
Reaching Younger Clients
Kering’s Gregory Boutte, Chief Client and Digital Officer, has described the company’s approach to technology as one of \”test and learn\” rather than \”wait and see.\” He emphasized the importance of embracing new technologies to appeal to younger and Asian customers. Kering’s flagship brand, Gucci, has been accepting cryptocurrency payments in 10 different cryptos for most of its products in the United States since 2022.
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Printemps plans to expand its cryptocurrency payment option to New York City, where it will open a multibrand store in the Wall Street district in March. Following Bitcoin’s rise in late 2021, several luxury brands, including Tag Heuer and Gucci, began accepting cryptocurrency for select purchases in the U.S.
Crypto advocate and influencer Eunice Wong, also known as \”Eunicorn,\” is one of the buyers using digital assets for luxury purchases, including several high-end watches like the Audemars Piguet Royal Oak. However, Wong prefers bypassing traditional retail experiences and purchasing through the secondary market. \”If I will buy, I\’ll buy on the secondary market, not through them,\” she said. \”I want it now.\”
