Fashion company Farfetch joins other luxury giants in adopting crypto payment

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Farfetch is the newest premium fashion brand to experiment with digital currencies. Later this year, the luxury clothing company will begin accepting bitcoin payments in its marketplace.

The cryptocurrency payment functionality will be tested in luxury boutiques across the European Union before being rolled out to the United States, Europe and the United Kingdom.

Cryptocurrency is “digital fiat” whose value and transactions are validated by cryptography, as opposed to a central monetary authority. They are considered an alternative to the traditional banking system.

Seven cryptocurrencies, including Bitcoin, Ethereum, and Binance Coin, will be available at launch. The rollout follows a successful trial of the new feature with Browns, a Farfetch-owned retailer, and a selection of Off-White items.

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Farfetch: a major luxury player

Farfetch’s revenue reached $1.7 billion in 2020, up 64% from 2019. The company has progressively digitized the fashion industry, operating as a distributor for brands and their providing white label e-commerce capabilities.

French luxury conglomerate LVMH Louis Vuitton SE controls 60% of Off-White. The company is operated by the New Guards Group of Milan, which is a subsidiary of Farfetch.

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 said point-of-sale terminals will enable in-store transactions that allow users to access their cryptocurrency wallets and make payments by scanning a QR code.

As an alternative to conventional payment methods, merchants around the world are increasingly accepting digital cash as a means of payment.

Some 85% of business owners surveyed in a recent study believe that cryptocurrencies as a method of payment will be universal by 2027.

BTC total market cap at $553 billion on the weekend chart | Source: TradingView.com

Fashion brands are gravitating towards crypto

Regarding the brand trial, Farfetch Founder, Chairman and CEO José Neves said:

“This was an important step to test and learn, and we are excited to share our technical and service expertise with the community.”

In recent months, luxury goods and fashion companies have turned to cryptocurrencies. Luxury auction houses such as Christie’s and Sotheby’s accept crypto assets as payment.

This year, high-end watchmaker Franck Muller and Italian luxury brand Michele Franzese Moda said they would accept cryptocurrency purchases.

Chipotle Mexican Grill, a leading restaurant chain, has also started accepting cryptocurrency payments.

“As a platform company, we are continuously developing to serve as the luxury industry’s bridge to new technologies and the environments where luxury customers find themselves today,” said Neves.

Suggested Reading | Research Shows Over 90% of US Businesses Embrace Rising Crypto Disk Sales

Featured image from TIME, chart from TradingView.com
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