KEY FACT: Ferrari is expanding its cryptocurrency payment options to its European dealerships starting from the end of July 2024. This follows a successful rollout in the United States and aims to reach additional international markets by year-end, pending regulatory approval. Ferrari has also partnered with cryptocurrency payment service providers to ensure secure and efficient transactions in converting digital currencies to traditional ones and address cryptocurrency volatility concerns.
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Ferrari Integrates Cryptocurrency Payments Across European Dealerships
Ferrari has announced the extension of its cryptocurrency payment system to its European dealership network starting from the end of July. This move follows the successful adoption of cryptocurrency payments in the United States. By the end of 2024, Ferrari plans to extend this system to other international markets where cryptocurrency transactions are legally accepted. This development was communicated through a press release by Ferrari on July 24.
At the time of the announcement, most of Ferrari’s European dealers had already adopted or were in the process of adopting the new payment system that adds to the traditional ones, the firm said, adding:
“By the end of 2024, Ferrari will expand cryptocurrency transactions to other countries in its international dealer network, where cryptocurrencies are legally accepted.”
Moreover, Ferrari is collaborating with various cryptocurrency payment service providers to ensure secure and seamless transactions. These providers will handle the conversion of cryptocurrencies into traditional currencies, mitigating the need for dealers to manage the digital assets directly. This partnership also addresses concerns related to the volatility of cryptocurrency values and ensures the verification of funds.
Ferrari emphasized in the announcement that its crypto payment tools do not require dealers to manage cryptocurrencies directly. Instead, customers’ cryptocurrencies like Bitcoin will be automatically immediately converted into fiat currencies and sent directly to bank accounts.
“The providers' solutions will also allow for the verification of the source of funds and protect transactions from price fluctuations related to exchange rates,”
In the United States, Ferrari initially partnered with BitPay to enable crypto payments. BitPay is a major local crypto payment firm that serves global brands like AMC Theaters, the electronics retailer Newegg, and others. Ferrari's spokesperson said in an interview that the platform is in use in the U.S. and Canada, and would pave the way for the European integration.
“As of today, the platform is utilized in both the U.S. and Canadian markets — by around 50% of the dealers,”...“In Europe, around 60% of the dealers have adhered to or are in the process of adhering to this project so far,”
Meanwhile, dealers in specific countries are excluded due to regulatory reasons and the lack of market solutions. Thus, those dealers will receive payments in local currency directly into bank accounts. However, Ferrari's clients in North America and Europe will have the ability to purchase their vehicles using Bitcoin, $BTC, Ether, $ETH and $USDC
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