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Innovative payment solutions at Farfetch: The evolution of shopping

July 1, 2022
Fashion giant Farfetch partners with Lunu to accept crypto payments

The leading luxury retailer has made a huge step towards a crypto revolution by expanding its payment options and adding cryptocurrencies as a payment method. Together with the Lunu innovative payment system, Farfetch is planning to improve its customer experience and attract more clients.

According to José Neves, founder and CEO of the British–Portuguese retailer, the acceptance of digital coins is a vital step “to test and learn” and “empower others to embrace cryptocurrency”.

The implementation of the new feature will take place over several stages:

  • In the coming months, it will be tested by the company’s private and VIP clients.
  • By the end of 2022, it will be expanded to include all US, UK and European clients.
  • A worldwide roll-out is planned for 2023.

For buyers, it’s all about convenience when it comes to purchasing luxury goods on the platform and in stores around the world. By simply scanning a QR code, they will be able to pay in their chosen cryptocurrency. So far, Farfetch offers seven options, including Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB).

How the biggest brands are making pro-crypto moves

The fashion industry quickly adapts to ever-changing customer trends and comes up with new strategies, from focusing on e-commerce via multiple sales channels to embracing ultra-modern technologies. The number of businesses accepting cryptocurrency is rapidly growing, which allows crypto wallet holders to pay with their coins with zero volatility or risk.

Farfetch has chosen the German-based Lunu as its payment provider. It will accept payment on behalf of the fashion retailer and exchange crypto for fiat money at the most favorable rates. As for returns, they will be available in the same currency that has been used for payment.

Farfetch is not the first brand to prosper amidst the current market challenges and develop a crypto strategy. Since the start of the pandemic and even earlier, top companies have begun embedding modern technologies.

Which companies accept cryptocurrency in 2022?

As the era of fiat money slowly approaches its twilight, the number of online stores that accept cryptocurrency only seems to be growing. Among the first adopters of BTC payments were Microsoft and Twitch, with both companies starting to accept payments in crypto in 2014.

As of today, digital assets can be used to purchase Swiss luxury watches from Hublot or TAG Heuer, coffee from Starbucks, an exclusive yacht from TJB Super Yachts, a seat on a Virgin Airlines plane, groceries from Whole Foods, bags from Gucci and much more. In the US alone, more than 2,300 businesses accept payments in BTC and other coins.

Holders of crypto wallets are getting more and more options in numerous stores across the world. The trend for paying in coins is expanding: companies understand the necessity of these changes and are willing to make the first steps towards a more profitable future. As for customers, payments in Bitcoin, Ethereum, and other cryptocurrencies have never been easier.

Along with online payments, Farfetch has also tested in-store transactions in digital coins. In fact, the final decision to switch to this service was based on the successful trial of Lunu’s terminals in several stores (in France, Italy and the UK). Transactions can take as little as a couple of seconds, and the client can be confident in the best possible crypto-fiat exchange rate at the moment of purchase.

How innovative payment systems improve the customer experience

Improving the payment process is the key to retaining clients. The cutting-edge clientele values every second, so people don’t expect to waste their time in queues or wait for multiple new tabs to be opened when they are looking to purchase goods. Everyone therefore expects a speedy and secure transaction.

A company that chooses to accept crypto payments on its website and in stores solves the following pain points for its customers:

  • the need to withdraw cash;
  • worries about exchange fees (when shopping abroad);
  • security issues related to entering card data;
  • the necessity of carrying a wallet;
  • problems related to remembering passwords;
  • worries about transactions being declined.

Companies that attentively study consumer behavior and are the first to adapt to changes gain a huge advantage. The largest corporations are already used to the idea that crypto payments are the future, whether they want it or not.

The role of digital currency in online and offline payments

Payments in crypto are no longer ‘nice to have’ – they are a must-have for every business. Such an innovative payment system has benefits for both customers and vendors.

First of all, it unlocks a new customer base. Up to 40% of clients that pay with crypto are the brand’s first-time buyers and their average purchases are twice the size of those made with credit cards. As a result, revenue grows. With as little as 1% in commission (this is what Farfetch pays for every transaction via Lunu’s Terminal and Widget), it feels like a win for the luxury retailer.

Secondly, the significance of cryptocurrencies is increasing on the global level. We know that the currencies’ utility is the main factor in their improvement. If crypto is gladly accepted in any part of the world this will only increase its utility and hence its value.

In the near future, we may expect the number of stores that accept cryptocurrency to keep growing rapidly. This is why it’s important to adopt the best payment processing solutions for smooth, quick and secure transactions right now.

About the Lunu system

Accepting crypto may be a challenge for merchants: after all, it’s relatively new and unknown. Luckily, with modern solutions, there’s no need to worry about how Bitcoin and crypto-fiat exchange works.

The only step that’s required is choosing a reliable partner.

For companies working in the luxury segment, it’s especially important to provide cutting-edge services and make the buyer–business interaction as smooth as possible. For example, Farfetch has chosen the Berlin-based company Lunu as its payment processing system. The retailer is planning to add Lunu Widget to its website for quick crypto payments and use the Lunu Terminal in its stores across the globe.

Lunu Terminal

In-store payments would be unimaginable without these modern tools. At Lunu, this device combines all popular payment options: credit cards (coming in 2023), all contactless NFC payments, plus an unlimited number of cryptocurrencies. With this ultra-modern terminal, the payment process takes seconds. There is no doubt that the number of crypto purchases will steadily grow thanks to these technologies.

Lunu Widget

The Lunu Widget offers a solution for quick and secure online purchases. It works the same way as any other payment gateway but with one major advantage: it allows customers to choose a digital coin and pay for the purchase at no extra cost by simply scanning a QR code.

Final thoughts on the future of crypto payments

Paper money has been ruling this world for way too long. We live in the time of a truly significant historic event: the inevitable shift toward digitalization and a cashless society. Luxury giants are pioneers of these transformations – they gladly welcome new technologies and test innovative payment systems to create stable revenue even during ongoing economic uncertainty.

With the increasing number of companies accepting cryptocurrency and clients choosing digital coins to pay for their purchases, it’s time for every brand to get its priorities straight. As a business, are you ready for the change?