2023-10-18
Ferrari, the renowned Italian luxury car manufacturer, has announced that it will accept cryptocurrencies as a form of payment in the near future. Enrico Galliera, the head of marketing and sales at Ferrari, revealed this news to Reuters. Currently, Ferrari has activated Bitcoin (BTC), Ethereum (ETH), and the stablecoin USDC as acceptable cryptocurrencies, with payment processing being handled by the US-based company Bitpay. Importantly, Ferrari has emphasized that there will be no additional fees or surcharges associated with cryptocurrency payments.Galliera explained that this decision was prompted by increasing demand from both the market and traders whose clients frequently invest in cryptocurrencies. He noted that these investors range from young individuals who have accumulated wealth through cryptocurrencies to more traditional investors seeking diversification in their portfolios. Initially, this service will only be available in the United States, but Ferrari has plans to expand into the European region with a different payment partner.
Ferrari stands out among its competitors in the automotive industry, as most carmakers have been hesitant to accept cryptocurrencies. For instance, Tesla, led by Elon Musk, initially embraced Bitcoin and began accepting it as a means of payment in February 2021. However, the company discontinued this service shortly afterward, citing concerns about the environmental impact of cryptocurrency mining.
Galliera stressed that cryptocurrency acceptance by Ferrari will facilitate connections with individuals who may not currently be clients of the luxury car brand but have the means to afford a Ferrari. While he did not provide specific projections for crypto sales, Galliera mentioned that the company's order portfolio is strong and fully booked until 2025. This move into cryptocurrencies represents an opportunity for Ferrari to explore new avenues of growth.
However, it is unclear how many cars Ferrari expects to sell through cryptocurrency transactions. The company plans to test the expansion into this new realm and the potential it holds. Notably, Ferrari sold 13,200 cars last year, with prices ranging from over 200,000 euros ($211,000) to 2 million euros.
Ferrari intends to extend its cryptocurrency acceptance program to Europe by the first quarter of next year, followed by other regions where cryptocurrencies are legally accepted. Europe, the Middle East, and Africa (EMEA) represent Ferrari's largest region, accounting for 46% of its total car shipments in the first half of this year. Galliera stated that the interest in cryptocurrencies appears to be consistent across the United States and Europe, with no significant differences observed.
It is important to note that Ferrari has partnered with BitPay, one of the most prominent cryptocurrency payment processors, for the initial phase in the United States. Transactions in Bitcoin, Ether, and USDC will be facilitated through BitPay. This choice enables Ferrari's dealers to be shielded from price volatility, as BitPay will immediately convert cryptocurrency payments into traditional currency.
As the payment processor, BitPay has the responsibility to ensure that the virtual currencies used for transactions originate from legitimate sources and are not linked to criminal activities, money laundering, or tax evasion. Galliera expressed confidence in the acceptance of this cryptocurrency payment method among Ferrari's US dealers, with the expectation that more dealers will join in the near future.
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