Ferrari Now Accepts Cryptocurrency Payments
- Ferrari is now accepting cryptocurrency as payment for its luxury sports cars in the U.S. and plans to expand this option to Europe.
- This move comes in response to increasing demand from customers and the evolving crypto landscape.
- The company’s Chief Marketing and Commercial Officer, Enrico Galliera, emphasized their commitment to carbon neutrality by 2030.
- Ferrari has partnered with BitPay, a major cryptocurrency payment processor, to facilitate smooth transactions in Bitcoin, Ethereum, and USDC.
- This bold step aims to bridge the gap to new customers and revolutionize the luxury car market while ensuring compliance and security.
The luxury car industry is undergoing a remarkable transformation as Ferrari (RACE.MI), the Italian legend known for its high-end sports cars, embraces cryptocurrency as a payment option in the United States.
This bold step comes at a time when many blue-chip companies are cautious about digital currencies due to their volatility and regulatory challenges.
Previously, Tesla, an electric car giant (TSLA.O), ventured into the cryptocurrency realm in 2021 by accepting Bitcoin as payment, only to halt the practice later due to environmental concerns voiced by CEO Elon Musk.
Overcoming Energy Concerns
While some cryptocurrencies, like Ethereum, have improved their energy efficiency, Bitcoin still faces criticism for its energy-intensive mining.
Nevertheless, Ferrari is undeterred by these challenges as they embark on their cryptocurrency journey.
In the first half of this year, Ferrari shipped over 1,800 cars to its American region, with a strong order portfolio booked until 2025.
Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, sees cryptocurrency acceptance as a way to bridge the gap to potential customers who may not have previously considered owning a Ferrari.
“This will help us connect to people who are not necessarily our clients but might afford a Ferrari,” he said.
Expanding the Cryptocurrency Scheme
In 2022, Ferrari sold 13,200 cars, with prices ranging from over 200,000 euros to an astonishing 2 million euros.
Looking ahead, the company plans to expand its cryptocurrency payment scheme to Europe in the first quarter of the next year.
Their ambitions don’t stop there; Ferrari aims to explore other regions where cryptocurrencies are legally accepted.
A Seamless and Stable Payment Experience
To facilitate the initial phase of cryptocurrency payments in the United States, Ferrari has partnered with BitPay, one of the largest cryptocurrency payment processors.
BitPay will enable transactions in Bitcoin, Ethereum, and USDC, a popular stablecoin. The adoption of these payment methods aims to provide convenience to customers.
Galliera reassured customers that prices would remain consistent, with no additional fees or surcharges when making payments through cryptocurrencies.
BitPay will swiftly convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, ensuring they are shielded from the price fluctuations associated with digital assets.
Similarly, Honda, the renowned Japanese automaker, has ventured into the world of cryptocurrency by partnering with FCF Pay, a blockchain payment system.
This collaboration allows customers to purchase Honda products using various cryptocurrencies, positioning Honda at the forefront of the Web3 industry.
FCF Pay has plans to expand its cryptocurrency payment platform globally and offers a fee structure of $3 plus 2% in cryptocurrency for transactions.
This partnership goes beyond product purchases, enabling customers to explore cryptocurrency integration in various aspects of their interactions with Honda, including leasing and renting vehicles, marking a significant step toward comprehensive cryptocurrency adoption in the automotive sector.
Toyota’s Early Adoption of Cryptocurrency
While Ferrari and Honda are pioneering the use of cryptocurrency in the automobile industry, it’s also worth noting that Edmark Toyota, a U.S. Toyota dealership has been accepting Bitcoin, Ethereum, and Litecoin payments since 2021.
This forward-thinking dealership has witnessed a growing number of customers using cryptocurrency to purchase vehicles.
They facilitate these transactions through the third-party payment processor BitPay, making the process of buying a Toyota with cryptocurrency seamless and secure.