The Italian luxury sports car manufacturer have made a bold move in relation to payments. It’s been revealed that Ferrari USA is accepting crypto as a form of payment for its vehicles. The company plans to extend this payment option to Europe in response to requests from its affluent customers.
While many blue-chip companies have been hesitant to embrace cryptocurrency due to its volatility and impracticality for commercial use, Ferrari has decided to cater to its clientele’s desires. Notably, Tesla, an electric carmaker, briefly accepted bitcoin as payment before discontinuing the practice over environmental concerns raised by CEO Elon Musk.
Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, stated in an interview that cryptocurrency providers have made efforts to reduce their carbon footprint through the implementation of new software and increased use of renewable energy sources. He confirmed the company’s commitment to achieving carbon neutrality across its entire value chain by 2030.
Consumer demand from the market:
Ferrari’s decision to accept cryptocurrency comes in response to demand from the market and dealers. Galliera noted that both young and traditional investors are interested in diversifying their portfolios through cryptocurrencies.
While certain cryptocurrencies, including the second largest Ether, have made improvements in their energy efficiency. Bitcoin continues to receive criticism for its energy intensive mining process. Nevertheless, Ferrari successfully shipped over 1,800 cars to its Americas region, which primarily includes the United States, in the first half of the year.
The marketing and commercial chief did not specify how many cars Ferrari expects to sell through cryptocurrency. However, he mentioned the order portfolio is fully booked until 2025. Their entry into crypto will allow Ferrari to reach potential customers who may not currently own a Ferrari.
Ferrari prices range from 200,000 euros to 2 million euros. Plans to expand its cryptocurrency payment option to Europe by the first quarter of next year. In future Ferrari aim to introduce into other markets, as long as they are legally accepted. The Europe, Middle East, and Africa (EMEA) region currently represents Ferrari’s largest market, accounting for 46% of the car shipments in the first half of this year.
Galliera stressed that the interest in cryptocurrency payments is comparable in the United States and Europe, with no significant differences observed. However, it is worth noting that some countries, such as China, place restrictions on cryptocurrencies.
BitPay Making it all Possible:
For the initial phase, Ferrari USA will be accepting crypto with their partner BitPay, one of the largest cryptocurrency payment processors. The company will accept payments in bitcoin, ether, and USDC, a stablecoin. In different regions, Ferrari may collaborate with other payment processors. Galliera assured that prices will remain unchanged, with no additional fees or surcharges for cryptocurrency transactions. To protect dealers from price fluctuations, BitPay will convert cryptocurrency payments into traditional currency on their behalf.
Galliera emphasized that one of the primary goals of using a payment processor like BitPay is to avoid directly handling cryptocurrencies. This is to shield both Ferrari and its dealers from their inherent volatility. Additionally, BitPay will ensure funds originate from legitimate sources and are not associated with criminal activities.
A majority of Ferrari’s U.S. dealers have either already signed up for this cryptocurrency payment scheme.