Buying a car in open cypto-currency at LG Group

The LG Group, a specialist in the sale of prestige car brands, has announced its association with an alternative payment player: Lyzi. Their joint work has led to the opening of a new payment method allowing drivers to take possession of a vehicle from the group, in crypto-currency. An initiative that places virtual currencies in a very concrete sector.  

 FACTS

• Lyzi is presented as a French super-app specialising in crypto-assets and payments. It allows buying, selling and paying in cryptos.

• Thanks to its partnership signed with the LG group, it also becomes a payment tool for the purchase, in dealerships, of Mercedes, Jeep, Smart, Ineos, Fuso or Yamaha or Indian motorbikes.

• In addition to the purchase of the vehicles themselves, Lyzi will also allow vehicle owners to pay for the maintenance of their cars for operations carried out at LG Group dealerships. Vehicle rentals can also be paid for through this method.

• The crypto-assets open to this type of transaction are Bitcoin, Ethereum and 23 other virtual currencies.

• The service is based on the use of the Lyzi application, which is now accepted as a means of payment by the LG Group. The simple reading of a QR Code by the LG Group dealer validates the payment.

• The crypto/euro conversion takes place instantly. The amount in euros, which is not capped, arrives on the LG Group's account the day after the conversion and acceptance operation.

• The service will be available to LG Group customers in France (in the south-west) and Spain. The group has around 20 dealerships in these countries.

The Lyzi solution is based on the service provider Zebitex, a subsidiary of the Digital Service group and a regulated exchange platform allowing the opening of payment accounts for individuals and professionals. Launched in 2018, it is registered both as a digital asset service provider (DASP) with the French financial markets authority (AMF), under No. E2021-012, and as a payment service provider (PSP) with the financial sector supervisory commission.

CHALLENGES

• Making payments more flexible: For LG Group, this initiative represents a marketing coup, a way to justify its ambition to make its client services very flexible and open. But it must also respond to a need for innovation and openness to a large potential customer base.

• Making virtual currencies real: Beyond Metavers and online purchases, this announcement represents a way of making virtual currencies a little more concrete, by opening up a new application in the very real world of car purchases.

MARKET PERSPECTIVE

• According to an Ipsos survey relayed by the LG Group, 8% of French people held crypto-assets at the beginning of the year and this figure is expected to rise to 12% by the end of the year. This market therefore represents new opportunities that are still relevant despite the crisis that has recently affected it.

• Moreover, while it still seems difficult to use crypto-assets to make real-world purchases of physical products at present, LG Group's initiative should break down the barriers.

• It is also particularly noteworthy that it involves the purchase of cars.