Luxury Brands May Soon Let You Pay in Cryptocurrencies

Cryptocurrency is on the rise, and high-end retailers have taken notice.

The top luxury brands are considering accepting Bitcoin and similar digital payment methods for their wares, according to Reuters. Though quick to respond to trends in the realm of style, masions typically take their time when it comes to changing how their businesses operate. But cryptocurrency’s rapidly increasing value coupled with a desire to reach new, high-net-worth clients with ample disposable income amid a luxury slowdown just might change that.

While LVMH-owned Hublot and TAG Heuer as well as Kering-owned Gucci and Balenciaga have dabbled with cryptocurrency payments in the past, luxury conglomerates and high-end retailers are interested in making digital currency a more permanent option. Paris’s Printemps, for example, just recently became the first European department store to accept cryptocurrencies as payment in store in partnership with Binance, the world’s largest cryto exchange, and Lyzi, a French financial tech company, Reuters reported.

Even the most established cryptocurrencies, like Bitcoin, have been considered too volatile by regulators to make for reliable payment methods until recently, according to the outlet. However, support for crypto from the incoming Trump administration in the U.S. and blockchain innovations that could improve predictability are beginning to shift perception, as Bitcoin crossing a record $107,000 earlier this week, Yahoo Finance reported.

Luxury brands also hope the shift could prove valuable from a brand strategy perspective. Many such company, especially those with a long heritage, are eager to find new ways to bring customers into the fold that feel contemporary. Making cryptocurrency payments readily available could help established labels feel innovative in the minds of shoppers. However, the act is largely symbolic as a majority of crypto retail transactions are immediately converted to dollars or euros upon receipt. That isn’t deterring investors who are looking at fine watches and exclusive handbags—two categories that often appreciate in value over time—from adding them to their portfolios.

For some brands, the embrace seems to be mutual. Balenciaga recently released a leather cardholder specifically designed for Stax, the physical crypto wallet from Ledger. Gucci now accepts payment from 10 different cryptocurrencies for the majority of its products sold in the U.S., an active testing ground for its parent group, Kering, that could prompt expanded cryptocurrency programs if the current incarnation is deemed successful.