Dive Brief:
- Buy now, pay later company Afterpay has partnered with New York Fashion Week to release limited-edition non-fungible tokens that come with exclusive merchandise and in-person experiences, according to a press release shared with Retail Dive. Afterpay also released a separate free NFT that comes with a 6-month free trial of Tidal music streaming, access to a NYFW close-friends group on Instagram and more.
- The NFTs were developed in collaboration with five designers — Altu by Joseph Altuzarra, AnOnlyChild, Jonathan Simkhai, Kim Shui and The Blonds — inspired by each of their Spring/Summer ‘23 collections. Each NFT comes with real-life goods such as a special edition leather tote, invites to after parties, original runway sketches and more.
- The designer NFTs cost $100 through a unique webpage, and all proceeds will be donated to the nonprofit Free Arts NYC. Customers can pay in four interest-free installments.
Dive Insight:
Afterpay is bringing its buy now, pay later services to the world of NFTs — and they come with tangible benefits for both customers and a nonprofit.
The NFTs are dubbed as “keys” to fashion week, per the press release. Every design is the designer’s unique take on what a key to fashion week looks like. The accompanying events or merchandise that buyers have access to allow customers to have a digital and physical experience during one of fashion’s most popular events.
Luxury brands — many of whom will be at NYFW — are increasingly selling NFTs that come with exclusive goods. Jewelry retailer Tiffany & Co. recently sold limited CryptoPunks NFTs for around $50,000 that include a custom-made necklace based on the design. Prada announced plans in June to release monthly NFT drops that are accompanied by gender-neutral physical products.
However, NFT transactions have decreased in the past few months, with transaction volume as of July 1 on the NFT marketplace OpenSea decreasing 79% compared to May 1, according to Dune analytics.
Afterpay’s NFT release comes with a lower barrier to entry than many NFTs, though. The designer collection is purchasable with U.S. dollars instead of cryptocurrency like Bitcoin or Apecoin, and the price is relatively small compared to the high cost of rare NFTs like CryptoPunks.
