SwapPay will be Australia’s first cryptocurrency for fashion

SwapPay will accept clothing in good condition, pay customers for postage and then offer a virtual “coin”, of varying value, for the returned goods.

“The coin is not assigned a value by SwapPay,” Mr Elsibai said. “It’s determined by the brands themselves. So a coin at one brand might be worth $30, at another it might be $10.”

His hope is that most returned clothing will be donated to charitable organisations, but some may be recycled and made into new garments.

Returned clothing can be from any brand, and while initially SwapPay will be offered only with Australian Brands Alliance’s businesses, Mr Elsibai hopes to open up to other retailers.

“We’re looking inside the fashion sphere, and outside, too,” he said. “There is a lot of scope here; we just want to make it a cool and valid option for people, and take the guilt away from unwanted clothing.”

SwapPay is not the only business to offer return-and-earn: The Iconic, for example, offers free postage for unwanted clothing which is then donated to the Salvation Army.

Upparel, a clothing recycling business, accepts clothing (except underwear) in any condition and recycles it, breaking down the fibres and making new products. Customers who donate receive a voucher which can be redeemed online.

Even fast fashion brands like Swedish giant H&M and Spanish high street label Zara are attempting to revive their sustainability credentials with garment recycling programs.

Turning a profit, said Mr Elsibai, is a work in progress.

“SwapPay is a communications platform, so we may charge retailers a fee for marketing through the platform,” he says. “We are still ironing those things out. But one thing we will not do is make a profit from the returned clothing – that is all to be donated.”