National Jeweler Network

Market Developments

Jewelry chain to accept Bitcoin for payment

June 13, 2014

Wilmington, N.C.--Reeds Jewelers is the latest in a number of big retailers who will allow customers to pay for goods via the digital currency bitcoin.

The Wilmington-based retail chain will partner with Bitcoin platform Coinbase to begin accepting the form of payment in all 64 of its locations as well as on Reeds.com. The retailer’s physical locations will have tablets to facilitate the transactions, the company said. 

In addition to being able to use the digital currency to purchase jewelry, customers also can use bitcoins to buy gold ingots and diamonds with Gemological Institute of America grading reports.

Bitcoin is a decentralized digital currency, like “digital coins that you can send over the Internet,” as the company describes it. They’re transferred from person to person over the web without going through a third party, such as a bank.

The value of the currency fluctuates with the market and consumers must have a Bitcoin wallet in order to use the service.

Reeds has set up an information center on its site to help consumers understand bitcoins and how they can use the currency to pay as the chain makes the transition.

“Since our founding in 1946, Reeds Jewelers has aimed for excellence in customer service and providing the latest innovations to enhance the shopping experience," said President and CEO Alan Zimmer. “Reeds was one of the first jewelers with a digital presence, launching our website in 1998, and being the first fine jeweler to accept bitcoin in all retail locations and online at Reeds.com is a natural evolution. Reeds Jewelers is pleased to be open for business with Bitcoin.”

Many major retailers in all consumer product categories have signed on to allow shoppers to pay for purchases with bitcoins, including Overstock.com, Amazon, Target, Kmart, and Sears, with more continuing to do so month after month.

Verichannel first announced in January that it would partner with Bitcoin payment processor Coinapult to bring Bitcoin to jewelry retailers, one of the first attempts to bring the digital currency to the jewelry industry.

For a fixed fee of $3 per transaction, Verichannel’s partnership allowed jewelry retail stores and e-tailers to accept bitcoins as they would a credit card or PayPal and receive U.S. dollars directly into their bank accounts without having to deal directly with bitcoins.