Gucci Accepting Crypto Payments in Select Stores
- Gucci announced last week they would be allowing crypto to be used as a payment method in select stores.
- Gucci’s goal is to implement crypto payments across all North American stores, hopefully.
- As Gucci is the first luxury fashion brand to utilize cryptocurrency in its operations, it is interesting to see how competitors will combat their digital asset implementation.
Last week, luxury fashion house Gucci announced they would start accepting digital assets as a means of payment. The luxury brand mentioned that customers would be able to use this new feature via a QR code. So, when consumers wish to purchase an item from the Gucci store using crypto, they will receive an email from the company containing a QR code that allows them to link their crypto wallet and make the payment.
Why Gucci is Accepting Crypto Payments
When asked about Gucci’s reasoning behind accepting crypto payments, Gucci President and CEO Marco Bizzarri said, “Gucci is always looking to embrace new technologies when they can provide an enhanced experience for our customers; now that we are able to integrate cryptocurrencies within our payment system, it is a natural evolution for those customers who would like to have this option available to them.”
This quote indicates that Gucci realizes that the way daily transactions are conducted is changing, so they want to do a test run with crypto and see how it would affect their profitability.
Gucci announced that the following coins would be allowed to process transactions: Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, and five Stablecoins pegged to the United States Dollar, which were not specified.
Gucci Stores Accepting Crypto Payments
Although Gucci intends to allow crypto payments to occur in all of their stores across North America, their pilot program will allow the following stores to experiment with crypto payments first: Rodeo Drive in Los Angeles, The Shops at Crystals in Las Vegas, Miami Design District, Wooster Street in New York City, and Phipps Plaza in Atlanta.
Image Credit: Shutterstock.com / cornfield
A window display of handbags at a Gucci store in Singapore.
With Gucci making a natural evolution for their customers by providing them with more payment options, they may potentially increase their market share. Furthermore, people who currently possess a crypto wallet have very few select places to use their digital assets, such as on OpenSea, when they wish to buy and sell NFTs. Therefore, Gucci’s acceptance of cryptocurrency payments appeals to some who want to utilize their virtual assets to purchase tangible items.
Consequently, competitors such as Louis Vuitton, Christian Dior, and Armani may implement a similar feature in their operations. In addition, these competitors may wish to incorporate crypto to ensure that Gucci does not become the predominant luxury fashion brand due to its expansion of means of payment.
The Money Wrap-Up
It will be interesting to see how this series of events will affect Gucci’s operations as they are the first luxury brand to enter the virtual space. The crypto space is different from what most of these companies are used to, and some of them may be reluctant to take a risk and begin offering a feature that may damage their business in the long run.
Regardless of the outcome of Gucci’s crypto expansion, the increased exposure and use of virtual currency for daily activities make it intriguing to see how luxury retail brands use digital assets in the future.
Main Image Credit: Shutterstock.com / Sorbis