A new era of digital sophistication and exclusivity has dawned. Cryptocurrencies are reshaping the way high net-worth individuals purchase luxury goods. Many of the world’s 560 million+ cryptocurrency owners are leveraging their digital wealth to acquire tangible, high-value assets like watches, cars, yachts, and real estate.
And crypto holders may be more likely to make big splurges. Digital Commerce 360 reported that The 1916 Company experienced an average order value (AOV) of USD $80,000 for cryptocurrency transactions — significantly higher than its standard AOV of USD $25,000. WatchBox, the online retailer of luxury watch brands like Rolex and Patek Philippe, generated over USD $10 million in cryptocurrency sales over two years, with some single purchases exceeding USD $1 million.
Crypto Owners Are Poised To Flaunt their Digital Wealth
Many early adopters of cryptocurrencies have accumulated significant wealth, while becoming the pioneers of the digital age. This ethos also aligns with the luxury market’s values of exclusivity, rarity, and innovation. Consulting firm Bain predicted millennials — who are the largest demographic of crypto owners at 60% — would account for 40% of the global luxury goods market by 2025. Now in their 30s and 40s, affluent millennials are primed to acquire status and display their tech-forward thinking by spending their digital assets.
Luxury Brands are Leading the Way
Market leaders like Hublot, Gucci, and Ferrari and marketplaces like Farfetch are implementing digital currency payment gateways to show millennial consumers they share their passions. Crypto payments comprise up to 10% of total transactions for luxury market businesses that have implemented this payment method, showcasing the steady rise in demand.
“Customers are increasingly interested in new payment methods and cryptocurrency is growing in importance with luxury customers.” – FARFETCH
Crypto Ownership by Region
| Continent | Crypto Owners | Crypto Ownership Rate |
|---|---|---|
| Asia | 326.8 M | 59.7% |
| North America | 72.2 M | 13.2% |
| Africa | 42.5 M | 7.8% |
| Europe | 49.2 M | 9.0% |
| South America | 55.2 M | 10.1% |
| Oceania | 1.4 M | 0.3% |
Asia, with 327 million crypto owners, leads globally, highlighting immense potential for luxury brands targeting this market. Rapid crypto adoption in emerging markets like Africa due to limited access to traditional banking systems creates untapped opportunities to expand your customer base.
Benefits of a Digital Currency Payment Gateway
How it works:
- Higher Revenue Potential: Cryptocurrency customers are big spenders, with up to 30% higher average order value for crypto transactions over traditional payments.
- No Chargebacks: Blockchain technology eliminates chargeback fraud by giving merchants full control of refunds, reducing operational costs.
- Access to Emerging Markets: Stablecoins are preferred by many under-banked customers in emerging markets like Africa and Latin America as a way to shop and pay online, expanding the geographic reach of luxury retailers.
- Customer Satisfaction and Loyalty: Crypto customers can make payments directly without needing to convert to cash, delivering a seamless and convenient experience.
- Volatility-Free Transactions: Digital currency payment gateways like Triple-A instantly convert cryptocurrency into local currencies, ensuring businesses avoid market volatility while still embracing digital payments.
Start Accepting Digital Currencies at your Luxury Marketplace
With the growing population of cryptocurrency owners, including in emerging markets, comes an opportunity to tap into previously untapped market segments. Reach out now to find out how you can start accepting payments in stablecoins and cryptocurrencies with Triple-A.
