As interest in the metaverse has grown, so too has interest in digital currency. In recent years, many retailers have begun to accept cryptocurrency, with companies like DTC retailer Alo Yoga and Gucci expanding their payment options in 2022. Walmart even went so far as to search for a leader for digital and cryptocurrency products.

Despite the hype, some retailers have since backed away from crypto. Martha Bennet, vice president and principal analyst at Forrester, says the market is still volatile, and there’s little new money coming in. She explains that cryptocurrency didn’t solve any problems in payments, and a real-time payment system is easier and cheaper to replace it.

This begs the question: what does the approach of three retailers tell us about the market?

Pacsun was the first youth fashion retailer to accept cryptocurrency through Bitpay, a blockchain payment provider. The company noted that its digital sales had doubled from the previous year, likely because its target consumer, Gen Z, is often one of the first to hop on digital trends. Bennet notes that the data shows males aged 25 to 35 are more likely to use cryptocurrency for making a payment, noticeably older than Pacsun’s target audience.

GameStop beta launched its digital asset wallet and NFT marketplace in 2022. Former CEO Matt Furlong was terminated in June, and Ryan Cohen took the helm with a mission to turn the retailer into a tech company. However, in August the company announced it would end support for its crypto wallet due to regulatory uncertainty.

Tag Heuer, owned by LVMH, began accepting 12 cryptocurrencies on its U.S. website in May 2022. The brand also invested in NFTs through its digital watches, allowing customers to display their digital asset collection on a Tag Heuer Connected watch by connecting their crypto wallet to the watch.

Bennet explains that luxury retailers are more likely to accept crypto, especially if their digital assets are gold-backed. She gives Tesla as an example of a luxury retailer that has somewhat backed away from crypto, only accepting Dogecoin and only on eligible items.

Retailers are still investing in the metaverse and crypto, but Bennet believes that it needs more regulatory clarity. She thinks that technology alone cannot solve the hard issues, and that utopianism needs to be replaced with reality.