The surging value of Bitcoin has drawn the attention of luxury brands and retailers, prompting many to consider accepting cryptocurrencies as payment. This move aims to tap into new wealth pools and strengthen relationships with crypto-savvy consumers.
Previously, only a few high-end labels, such as LVMH's Hublot and Tag Heuer, as well as Kering's Gucci and Balenciaga, had experimented with cryptocurrency payment options. However, the landscape is shifting as interest in digital currencies grows.
Source: Coinmarketcap
Recently, Printemps, a prestigious French luxury department store, partnered with Binance, the world’s largest cryptocurrency exchange, and French fintech company Lyzi. Together, they introduced cryptocurrency payments, including Bitcoin and Ethereum, in Printemps stores across France. This milestone makes Printemps the first European department store to adopt such a system, sparking curiosity among other luxury brands.
“This has generated significant interest,” said David Princay, president of Binance France, who noted that discussions with additional luxury brands are underway.
Meanwhile, other high-end names are following suit. S.T. Dupont, known for its luxury pens and lighters, plans to accept crypto payments in two Parisian locations by the holiday season. Virgin Voyages, a cruise line, now offers a $120,000 annual sailing pass payable in Bitcoin.
Despite this growing adoption, regulators remain cautious, warning of cryptocurrency risks, including high volatility and limited real-world use. Such challenges have historically hindered widespread acceptance of digital currencies as a payment method.
However, market dynamics are changing. Support from U.S. President-elect Donald Trump, who is expected to introduce crypto-friendly policies, has contributed to Bitcoin's record-breaking rally. Analysts from S&P Global note that advancements in blockchain technology could help stabilize cryptocurrencies, making them more predictable for practical use.
A Fresh Image for Luxury Brands
Luxury companies, seeking innovative ways to connect with younger and tech-savvy audiences, are increasingly embracing cryptocurrency. For example, luxury conglomerate Kering’s digital strategy emphasizes a “test and learn” approach. Gucci has been accepting payments in 10 different cryptocurrencies in the U.S. since 2022.
Offering crypto payments allows brands to modernize their image and appeal to a younger demographic, said Andrew O’Neill, digital assets lead at S&P Global Ratings. “It helps brands shed a ‘stuffy’ reputation and resonate with millennials and Gen Z,” he explained.
Still, the use of cryptocurrencies in luxury retail is largely symbolic. Retailers typically convert crypto payments into traditional currencies to mitigate volatility risks. Yet, for crypto investors experiencing significant gains, splurging on luxury goods like designer handbags and watches is an attractive way to diversify their wealth.
Printemps, meanwhile, is expanding its crypto payment services. The retailer plans to open a store in New York City’s Wall Street district by March, enabling American customers to shop with digital currencies.
A New Frontier
The luxury sector’s embrace of cryptocurrencies marks a shift in its efforts to attract wealthier and younger clientele. By adopting innovative technologies and payment options, high-end brands hope to revitalize their appeal during challenging times for the industry.
Although the market remains niche, some luxury consumers, like Eunice Wong, are already making significant purchases using crypto. Known as “Eunicorn” in the crypto community, Wong is a prominent investor and influencer. Recently, she purchased several high-end watches, including an Audemars Piguet Royal Oak, using Bitcoin. Despite luxury brands’ efforts to engage with customers like her, Wong prefers bypassing traditional retail processes. “If I will buy, I'll buy on the secondary market, not through them,” she said. “I want it now.”
As Bitcoin continues to climb—reaching $107,000 recently—it’s clear that the intersection of luxury and digital assets is becoming more than just a trend.
