Fashion, Tech

Gucci is now accepting Crypto payments

Who’s next?

words by: Sahar Khraibani
May 20, 2022

In a considerable leap for the luxury industry, Gucci will soon be accepting crypto payments. This will begin in 5 U.S. stores at the end of May, with plans to expand the experiment to all of its directly managed North American stores this summer, making the brand a pioneer in its Web3 and physical communities. The move is a huge endorsement of the currency from a well-known luxury brand.

 

How will it work?

Customers will be able to make in-store crypto payments using a link supplied to them through email that contains a QR code. That code will propel them to make the payment from their crypto wallet.

 

Where will it be accepted?

Wooster Street in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta, and The Shops at Crystals in Las Vegas are the first Gucci boutiques to accept cryptocurrency.

 

Which coins can be used for payment?

Gucci will take Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, and five stablecoins tied to the U.S. dollar, among other currencies. Dogecoin, a “meme” cryptocurrency that was designed as a joke, will also be accepted.

 

Similar to mobile credit card payments, crypto payments are typically accepted in physical venues using a QR code or NFC reader that interacts with a customer’s smartphone cryptocurrency software. A retailer can convert payments to fiat currency, like U.S. dollars, automatically or keep them in digital form.

 

Although brands are rapidly experimenting with blockchain technology, particularly through NFTs, in-store crypto payments are still new. Gucci is a pioneer in this sense, as an early adopter of Web3 technologies. Crypto payments are another step in the brand’s efforts to integrate its existing physical presence with its burgeoning Web3 efforts.

 

Several other luxury retailers have already started testing out crypto payments. Most notably in March, Off-White stated that their stores in London and Milan have begun accepting payments in Bitcoin, Binance Coin, Ripple, Ethereum, and USD Coin. The process they use scans a QR code provided by the app, then processes transactions to find the best crypto-to-fiat exchange rate at the time. This option does not have limits in terms of payments, but refunds are only given as store credit. The difference here is that Gucci plans to offers refunds in cryptocurrency as well.

 

Stores will need to be upskilled to accept cryptocurrency payments, especially as NFT collectors have come to demand special privileges of ownership, such as access to certain product drops or specific places. Regardless, this still stands as a big shift in the fashion industry.

 

In other related news, Crypto firm FTX’s new global ambassador is Naomi Osaka.

 

Photo via Gucci