Luxury Goods Account for 20% of Items Sold in 2022 by Crypto-Enabled Merchants

2022 was the year of the hype around Web3, but 2023 is shaping up to be the year in which plans are executed. Luxury brands are now focusing more on a tangible use closely related to a physical product as opposed to a digital asset that exists only for the metaverse.

Everything then boils down to the use of crypto and digital assets for transactional purposes.

Wellbeing in Web3

Web3 has gradually established a warm relationship with luxury goods, and many brands that specifically cater to these markets have positioned themselves in this field. However, there is more to exploit than a sector willing to spend large sums of money. These brands also bring their loyal following to Web3.

Recently, Ralph Lauren announce Partnering with BitPay to accept cryptocurrency for the first time at their new store in Miami’s Design District. The new offering also includes the original crypto experience that grants NFTs via a multi-tiered partnership with online entertainment community Poolsuite, describing it as “deeply rooted in the Miami lifestyle.”

According to Merrick Theobald, Vice President of Marketing at BitPay, consumers have been drawn to using cryptocurrencies to pay for luxury goods thanks to their popularity and the emergence of user-friendly platforms. Speaking to CryptoPotato, the CEO said:

“One of the most difficult aspects of widespread crypto adoption is education about blockchain technology, wallets, and how to properly send digital assets to the right addresses. These are all key points that both consumers and merchants need to be aware of.”

According to data collected by BitPay, nearly 20% of items purchased using cryptocurrency last year were luxury goods. This includes gold, jewelry, watches, exotic cars, boats, real estate, yachts, and handbags. While cars and yachts accounted for 20% of the total number, jewelry and clothing accounted for 15%, and 12% for watches.

The US clothing retailer’s decision to dip its toes in Web3 depicted a growing trend of luxury goods becoming a favorite with the cryptocurrency crowd. But what does this mean for the future of cryptocurrency payment adoption?

breaking mainstream appeal

To embrace true crypto, the daily basics must be paid for in cryptocurrencies or digital assets. This has been a mostly controversial topic. But Theobald of BitPay expects this trend to follow suit in the near future, with luxury goods paving the way for it.

“As digital assets gain traction, I believe we will see a ripple effect from luxury goods to everyday necessities being paid for in cryptocurrency. In fact, we are already seeing this happen in real time with El Salvador adopting bitcoin as legal tender and starting many online merchants. In offering cryptocurrency payment options at checkout.”

The CEO also believes that peer-to-peer conversion and education services will serve as an effective transition to cryptocurrency as more people demand an alternative in moving into the digital economy.