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As FarFetch becomes the latest luxury retailer to embrace crypto, is the fashion world leading the way towards a new era for digital currencies?

FarFetch will allow customers to pay with cryptocurrencies, and is offering the technology to all of its brand and boutique partners.

By LLM Reporters  |  July 10, 2022
New colorful bags on fashion retail store display window in the shopping mall.

The cryptocurrency market has taken a hit over the past few months, with the prices of Bitcoin, Ethereum and the like sent tumbling in the wake of global economic uncertainty and surging inflation and interest rates. In May, Bitcoin made headlines when it crashed to below 50 per cent of its value when compared with the same month in 2021, and with the majority of alt coins following suit, it’s been an unsettling second quarter of 2022.

But despite these short-term difficulties, industry experts are still predicting big things for the crypto market as the year rumbles on, and the number of new sign-ups to the bitql app website and other online trading platforms remains high. A market known for its volatility and the dramatic peaks and troughs that characterise it, it has a reputation for remarkable resilience and the ability to bounce back, reaching some surprising numbers in the wake of Brexit, the pandemic and a host of other major events.

This year, experts believe that things are actually looking more promising than ever for Bitcoin and the like, as the world moves increasingly towards becoming a crypto society where these decentralised currencies are embraced with open arms across the board. While we already know that some countries – like China – have no intention of doing so, others, including El Salvador, have pioneered Bitcoin as a national currency. And with the luxury market continuing to make moves to accommodate its wealthy clientele – many of whom are crypto millionaires and wealthy traders – it’s making its way slowly but surely into the upper mainstream.

Crypto currency like gift or donatation or shopping with cryptocurrency
As the market for cryptocurrencies and non-fungible tokens surges, luxury fashion brands have a great opportunity to build customer loyalty

Already, we’ve seen big name brands like electric car manufacturer Tesla and high-end fashion house Louis Vuitton announce that they have begun accepting cryptocurrency as a means of payment for their luxury goods, and with boutique travel agencies and art houses alike also following suit, it seems crypto is now more usable than ever.

The latest notable name to the party? British-Portuguese online luxury fashion retail platform, Farfetch – which sells products from over 700 designer boutiques and premium brands from around the world. Founded by Portuguese entrepreneur Jose Neves, and with headquarters in London, an exclusive report by MarketWatch recently revealed that the big hitter will now be accepting Bitcoin and other cryptocurrency payments on its marketplace – which is great news for anyone with digital currency to burn.

Although FarFetch certainly isn’t the first respectable luxury retailer to get on board and ride the crypto wave, it’s one of the biggest so far, marking a major validation for the industry. The platform aims to begin rolling out the option to its high-end private clients at its European stores – which span everywhere from London and Paris to Milan – before extending it further afield. By the end of the year, shoppers in the UK, the US and the rest of Europe will be able to enjoy cryptocurrency shopping sprees, too, with the likes of Bitcoin, Ethereum and Binance Coin amongst seven digital assets included in the scheme.

Farfetch online fashion store. Laptop with screen of farfetch site.
In partnership with German cryptocurrency payment gateway provider Lunu, FarFetch is the latest in a number of reputable brands to work with the service provider in a bid to enable customers sitting on crypto fortunes to spend with ease. Image credit: nikkimeel/Bigstock.com

In partnership with German cryptocurrency payment gateway provider Lunu, FarFetch is the latest in a number of reputable brands to work with the service provider in a bid to enable customers sitting on crypto fortunes to spend with ease, and it’s certainly looking like it won’t be the last.

The luxury fashion world has undoubtedly been one of the fastest to adapt to cryptocurrencies, and is paving the way for other sectors to follow suit. As the pandemic taught us, it’s vital to adapt quickly to developments like these in order to stay afloat, and with the economic uncertainty we’re becoming used to still continuing, it has never been more true.

A prime example of how fashion is leading the way and setting an example to be learned from is designer Philip Plein, who recently opened the world’s first crypto concept store in London – a flagship shop that not only accepts payment for physical goods in 24 different cryptocurrencies, but also showcases much of its collection in digital NFT format. Exchange rates are accessible in real time via a QR code on each product, with the concept set to roll out to 100 other Plein stores worldwide over the coming months.