Farfetch is the latest premium fashion brand to experiment with digital currency. Later this year, the luxury apparel business will begin accepting bitcoin payments in its marketplace.
The cryptocurrency payment feature will be tested in luxury boutiques across the European Union before it expands to the United States, Europe and the United Kingdom.
Cryptocurrency is the “digital fiat” whose value and transactions are cryptographically legitimized, as opposed to a central financial authority. These are seen as alternatives to the conventional banking system.
Seven cryptocurrencies, including Bitcoin, Etherium and Binance Coin, will be available at launch. The rollout follows a successful test of the new feature with a selection of Browns, a retailer owned by Farfach, and a selection of off-white items.
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Farfetch: A Premier Player in Luxury
Farfetch’s revenue reached $ 1.7 billion in 2020, up 64 percent from 2019 The company is slowly digitizing the fashion industry, acting as a distributor for labels and providing their white-label e-commerce capabilities.
French luxury company LVMH controls 60 percent of the Louis Vuitton SE off-white. The company is run by the New Guards Group of Milan, a French subsidiary.
Farfetch registered $1.7 billion in total sales in 2020 (Nas Magazine).
For its point-of-sale terminals, the British-Portuguese luxury fashion company has partnered with German cryptocurrency platform startup Lunu.
Farfetch says POS terminals will enable in-store transactions that allow users to access their cryptocurrency wallets and pay by scanning a QR code.
As an alternative to the traditional payment system, merchants around the world are increasingly embracing digital money as a means of payment.
About 85 percent of business owners surveyed in a recent survey believe that cryptocurrency will become universal by 2027 as a form of payment.
BTC total market cap at $553 billion on the weekend chart | Source: TradingView.com
Fashion brands are attracted to crypto
Regarding the trial run of the brand, Jose Neves, Founder, Chairman and CEO of Farfach, said:
“It was an important step in testing and learning, and we are thrilled to be able to share our technical and service skills with the community.”
In recent months, luxury goods and fashion companies have turned to cryptocurrencies. Luxury auction houses accept crypto assets such as Christie’s and Sotheby’s Payments.
This year, premium watch maker Frank Mুলller and Italian luxury brand Michel Franzes Moda have announced they will accept cryptocurrency purchases.
Chipotle Mexican Grill, a leading restaurant chain, has begun accepting cryptocurrency payments.
“As a platform firm, we are always evolving to serve as a bridge to the new technologies and settings of the luxury industry where luxury customers are today,” says Neves.
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Featured image from TIME, chart from TradingView.com