Retail fashion giant H&M has launched a blockchain-based clothes rental service with scannable IoT labels on the clothing.

Customers at H&M’s store in Mitte Garten, Berlin, can pick garments for instant hire by scanning IoT connected stickers with their smartphone.

The service, a collaboration with Lablaco’s Spin platform, is set to run until the end of the year.

Customers access the service by signing up for Spin and then pay up to $11 in daily hire fees.

“To help create sustainable consumption patterns, H&M wants to find business models for recycling or reducing materials consumption,” said Stiliana Stoyanova, PR and event manager at the Mitte Garten store.

“New business models such as reselling or renting alongside with innovation in materials and recycling technologies play a crucial role in that,” Stoyanova told IoT World Today.

Blockchain, a decentralized ledger used for data sensitive IoT networks, is used to securely track rental information on each garment.

The ledger enables customers to upload photographs showcasing their look with the clothes before returning them to the store.

“We are always looking for interesting services and sustainable solutions to lead the change and create a special shopping experience for our customer,” said Stoyanova.

“By offering an IoT enabled rental service that allows circular traceability, we are taking a small, but important steps in our exploration process.

“We are excited to exclusively try out this blockchain based rental service in our Berlin Mitte Garten Store, where we have a unique community and customer base. They love to explore new things, are open for new tech features to experiment with their style and looks in a fashion-forward, sustainable and affordable way.”