Ford signs five-year payments agreement with Stripe for e-commerce development
A Ford F-150 pickup truck goes on sale at a dealership September 6, 2018 in Chicago, Illinois.
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Online payment processor Stripe has signed up Ford Motor Company as a customer, part of a five-year deal to bolster the auto giant’s e-commerce strategy.
Ford Motor Credit Company, the automaker’s financial services arm, will use Stripe’s technology to process digital payments in markets across North America and Europe, the companies said in a statement Monday.
Stripe will handle transactions for consumer vehicle orders and reservations, as well as bundled financing options for Ford commercial customers. The automaker also plans to use Stripe to route a customer’s payment from its website to the correct local Ford or Lincoln dealership.
The combination marks one of the biggest customer wins to date for Stripe and is part of Ford’s turnaround plan under CEO Jim Farley, who took the helm in October 2020.
Founded in 2010 by Irish brothers Patrick and John Collison, Stripe is Silicon Valley’s most valuable start-up, with a valuation of $95 billion. The company sells software that makes it easy for businesses of all shapes and sizes to accept payments over the Internet.
The company, which makes money by taking a small cut from every transaction it processes, counts Shopify, Salesforce and Deliveroo among its customers. But it faces increasing competition from rival fintechs such as Adyen and Checkout.com, which was valued at $40 billion in a $1 billion funding round last week.
“We are making strategic decisions about where to engage vendors with deep expertise and where to create the differentiated, always-on experiences our customers will enjoy,” Ford Motor Credit Company CEO Marion Harris said in a statement. .
Ford plans to begin rolling out Stripe technology in the second half of 2022, starting in North America.
“During the pandemic, people have felt comfortable paying online for groceries, healthcare and even at-home haircutting advice from barbers,” said Mike Clayville, Chief Revenue Officer of Stripe. “Now they expect to be able to buy anything and everything online.”
Ford’s market capitalization topped $100 billion for the first time last week as investors applauded the company’s electric vehicle strategy and its Ford+ restructuring plan. The company was the best-performing auto stock in 2021, beating Tesla and General Motors.
Stripe, meanwhile, is still a private company. There has long been speculation about when the company will go public. A Bloomberg report in September said Stripe had been in talks with investment banks about going public as early as 2022. But John Collison, Stripe’s chairman, told CNBC a month later the company was “very happy” to remain private.
Stripe hired Dhivya Suryadevara, the former chief financial officer of General Motors, as chief financial officer in August 2020.
– CNBC’s Michael Wayland contributed to this report