The soaring value of bitcoin has drawn the attention of luxury brands and retailers, with many exploring cryptocurrencies as a payment method to attract affluent crypto investors and strengthen customer loyalty.
Luxury giants such as LVMH’s watch brands Hublot and Tag Heuer, alongside Kering-owned Gucci and Balenciaga, have been pioneers in the space, experimenting with crypto payment systems. This trend gained further traction when Printemps, a prestigious French department store, partnered with Binance and fintech firm Lyzi to accept bitcoin and ethereum in its French outlets, making it the first European department store to adopt cryptocurrency payments.
“There have been quite a few calls. It’s generated interest,” said David Princay, president of Binance France, highlighting growing curiosity among other high-end retailers.
In response, luxury pen and lighter maker S.T. Dupont plans to introduce cryptocurrency payments in two of its Paris stores before the holiday season. Additionally, Virgin Voyages, a cruise company, recently began accepting bitcoin for its $120,000 annual sailing pass, signaling broader adoption in the luxury experience market.
Growing Interest Amid Regulatory Shifts
While cryptocurrencies like bitcoin have faced regulatory scrutiny for their volatility and limited real-world use, recent developments have spurred renewed interest. US President-elect Donald Trump’s expected pro-crypto policies have fueled record-breaking bitcoin prices, which surpassed $107,000 earlier this week. Analysts at S&P Global Ratings suggest that advancements in blockchain technology could improve cryptocurrency predictability, making them more appealing to businesses.
Targeting Younger and Tech-Savvy Clients
Luxury brands have historically embraced technological innovations to appeal to younger, affluent demographics. Gregory Boutte, Kering’s Chief Client and Digital Officer, describes their approach as “test and learn,” emphasizing the importance of new technologies in engaging younger and Asian clients. Gucci, for example, has accepted payments in 10 cryptocurrencies across its US outlets since 2022.
Luxury products have also become a favored diversification tool for bitcoin investors. Andrew O’Neill, Digital Assets Lead Analyst at S&P Global Ratings, remarked, “Offering cryptocurrency payments can be a way for companies to brand themselves as innovative rather than ‘a stuffy old brand that’s only selling to the boomers.’”
Balenciaga recently introduced a €350 leather card holder designed for Ledger’s “Stax” crypto wallet, signaling an integration of crypto functionality into luxury accessories. Ledger’s high-end “Stax” wallet, priced at $399, is aimed at a growing market of crypto-savvy customers.
Crypto and Luxury: A Budding Partnership
As the luxury sector recovers from one of its steepest downturns, cryptocurrency payments offer a means to attract new customers and demonstrate technological innovation. Printemps has already hinted at expanding its crypto payment system to New York City, with plans to launch a Wall Street retail outlet in March.
For some, like crypto influencer Eunice Wong, the allure of using digital assets for luxury purchases is evident. Having used cryptocurrency to acquire high-end watches, Wong remains skeptical about traditional luxury sales channels, stating, “If I will buy, I’ll buy on the secondary market, not through them. I want it now.”
The partnership between cryptocurrencies and luxury brands appears poised for further growth, fueled by bitcoin’s surge and the luxury industry’s need to innovate.
