- Ferrari is expanding its cryptocurrency payment system to European dealership network from the end of July 2024, following a successful launch in the United States.
- A Ferrari spokesperson stated that approximately 50% of dealers in the U.S. and Canada are using the platform, while around 60% of European dealers have adopted or are in the process of adopting the new cryptocurrency payment system.
OUR TAKE
Ferrari’s expansion of its cryptocurrency payment system to Europe represents a significant milestone in the integration of digital assets into the luxury automotive sector. The move underscores Ferrari’s commitment to innovation and catering to the evolving preferences of its discerning clientele.
–Vicky Wu, BTW reporter
What happened
Italian luxury sports car manufacturer Ferrari has announced plans to extend its cryptocurrency payment system to European dealership network from the end of July 2024, following a successful launch in the United States. The company’s decision to expand its crypto payment feature to Europe comes as part of its strategy to cater to the evolving needs of its affluent clientele and to stay at the forefront of technological advancements in the automotive industry.
Ferrari initially launched the crypto payment system in the United States in October 2023, partnering with BitPay, a leading cryptocurrency payment processor. This partnership enabled dealerships to accept payments in Bitcoin, Ether, and USDC, one of the largest stablecoins. BitPay’s solution automatically converts cryptocurrency payments into traditional fiat currency, protecting dealers from the volatility associated with digital assets.
According to a Ferrari spokesperson, the platform is currently utilised in both the U.S. and Canadian markets by around 50% of dealers. In Europe, around 60% of dealers have adopted or are in the process of adopting the new payment system. Ferrari aims to expand the cryptocurrency transactions to other countries within its international dealer network by the end of 2024, where cryptocurrencies are legally accepted.
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Why it’s important
Ferrari’s embrace of cryptocurrency payments marks a significant shift, highlighting the growing acceptance of digital assets as a legitimate form of payment among luxury goods manufacturers.
Despite the volatility of cryptocurrencies, which has deterred many blue-chip companies, Ferrari has moved forward to meet the demands of its affluent customer base. This initiative could pave the way for other luxury brands, potentially leading to wider adoption of cryptocurrencies as a mainstream payment method. By providing a secure and regulated environment through its partnership with BitPay, Ferrari is setting a precedent for integrating digital assets into luxury retail. This move addresses the evolving needs of clients, many of whom are early adopters of new technologies, and could attract a younger demographic. BitPay’s automatic conversion of cryptocurrencies into fiat currency protects dealers from price volatility.
However, patchy regulation and concerns over energy usage continue to pose challenges to broader adoption, with some countries, like China, remaining excluded from Ferrari’s expansion plan.
