Ferrari Welcomes Crypto Payments in U.S.
by Oskar Trotman
The market sets the trends, and Italian automobile manufacturer Ferrari has positively responded to requests from U.S. dealers and customers for the acceptance of cryptocurrency payments.
The information that Ferrari will start accepting crypto payments was confirmed this week by Enrico Galliera, the company’s chief marketing officer. Galliera has also stated that after the United States, Europe will be the next market targeted for the implementation of this payment scheme, as early as the first quarter of 2024.
“Prices will not change, no fees, no surcharges if you pay through cryptocurrencies,” Galliera said in a statement.
The initial partner for processing blockchain payments will be BitPay, which can handle transactions in USDC, Ether, and Bitcoin. One of the advantages of using BitPay for dealers is that the provider will instantly convert crypto payments into fiat money, safeguarding the local Ferrari dealership from price fluctuations of digital coins. However, other payment processors might be available in other countries as the company’s new payment policy expands around the globe.
Method to Combat Rising Inflation
In the first six months of 2023, Ferrari has delivered 1,800 cars to its American markets, including the U.S. The United States remains part of Ferrari’s biggest market, with 3,447 cars sold in 2022 in the Americas. The company’s total global delivery number is 13,221 vehicles, resulting in $1.024 billion in net profit for 2022.
The projected revenue for 2023 is around $6.224 billion, and the company has already made it clear that its prices will continue to grow, as it attempts to offset the rising inflation. The prices per car range from $211,000 up to $2 million, depending on the model.
Some industry experts view the introduction of crypto payments as a method to appeal to crypto investors, who should be more inclined to purchase a brand new Ferrari with their crypto coins. Ferrari has not revealed how many cars it plans to sell to crypto buyers but views this process as a test for the company, and if the results are promising, it will expand the crypto policy to its other regions.
Ferrari is not the first car company to accept crypto payments. The ice was broken by Tesla after the electric car manufacturer started introducing crypto purchases in 2021. Tesla put a hold on the policy shortly after its introduction, following CEO Elon Musk’s environmental concerns related to blockchain technology.
The Italian car giant is also promoting environmental awareness and is making a push to reduce its carbon footprint by assimilating innovative technologies and renewable materials. Ferrari’s stated goal is to be carbon neutral by 2030.
However, the market was way ahead of automobile manufacturers, with several online dealerships offering sales of used cars in crypto or functioning as a middleman for purchases of new automobiles. Automotive-inspired NFTs are also penetrating the market. In an industry dependent on innovation, cryptocurrency will remain a driving factor in the years to come, and other car brands are expected to follow Ferrari’s example.