Following in the footsteps of Gucci and other high-end businesses that have embraced Bitcoin and other forms of digital money in an effort to attract younger buyers, Farfetch Ltd. (NYSE: FTCH) -7.37 percent will begin taking cryptocurrency payments.
There will soon be an option for Farfetch’s “VIP” clients who want to pay in cryptocurrency to do so over the next few months, according to the company on Friday. Later this year, the option will be made available to all consumers in the United States and Europe. Farfetch offers an online marketplace akin to Amazon.com Inc., offering items from over 1,400 premium labels like Burberry, Prada, and Versace.
Farfetch CEO José Neves noted that luxury brands need to be “where the premium client is now and where they’ll be tomorrow.”
Some high-end stores are embracing cryptocurrencies as a method to connect with a new generation of wealthy clientele. A big number of rich individuals under the age of 40 have invested in Bitcoin, according to experts and corporations. The United States, according to some luxury companies, will be a key growth market in the next few years.
In May, Gucci and Balenciaga, which are controlled by Kering SA, announced they will start receiving payments in crypto. As of this writing, Gucci and Balenciaga are both implementing bitcoin payments in New York and Los Angeles.
This week, Gucci announced that it was extending its digital capabilities and attempting to boost its customer base among the under-30s.
As a result, LVMH Mot Hennessey Louis Vuitton SE, the company that owns luxury timepiece Tag Heuer, revealed intentions to accept cryptocurrency payments in the United States in May.
While luxury e-commerce remains relatively undeveloped compared with the larger online retail industry, the pandemic dramatically enhanced premium consumers’ usage of digital platforms. Farfetch announced sales of $2.3 billion last year, a 35 percent increase in 2020.
Farfetch claimed it has previously explored the usage of cryptocurrencies in several physical stores—including Browns, a department store it owns in London—and offered to share its know-how with its brand partners.
The London-based and New York-listed firm aspires to be the leading luxury retail internet platform. In addition, it offers IT services to high-end shops. Neiman Marcus Group, which owns Bergdorf Goodman, has agreed to invest $200 million in Farfetch as part of a transaction that would see Farfetch expand Bergdorf’s digital offerings.
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