Ford signs five-year deal with Stripe for e-commerce drive and online payment overhaul

• The deal is the part of Ford’s turnaround plan under CEO Jim Farley

• Ford will use Stripe to handle online transactions for vehicle orders and reservations, digital and charging services

Online payments company Stripe has struck a deal with Ford Motor Co (NYSE: F) in a five-year deal to bolster the automotive giant’s e-commerce strategy.

In a statement on Monday, the carmaker said its financial services arm Ford Motor Credit Co, will use Stripe’s technology to process digital payments in markets across North America and Europe.

Stripe will handle online payment transactions for vehicle orders and reservations, Ford’s digital and charging services as well as bundled financing options for the carmaker’s commercial customers.

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Ford said it also plans to use Stripe to route a customer’s payment from its website to the correct local Ford or Lincoln dealer.

“During the pandemic, people got comfortable paying online for groceries, health care, even home haircut advice from barbers,” Stripe’s Chief Revenue Officer Mike Clayville said in a statement. “Now, they expect to be able to buy anything and everything online.”

Stripe, largest private fintech

The deal will help Stripe add one of the biggest clients yet to its extensive customer list.

Founded in 2010 by Irish brothers Patrick and John Collison, Stripe is currently the world’s largest private fintech startup with a whopping $95 billion valuation. 

The California-based firm sells payment solutions that simplify businesses of all shapes and sizes to accept payments over the internet and makes money by taking a small cut on each transaction it processes.

Stripe boasts enterprise customers like Shopify, Salesforce, Lyft, Deliveroo, and Nasdaq.

Last November, John Collison said Stripe is not planning to go public in the immediate future, following a report that the company is planning to list itself in 2022.

Ford restructuring

The deal is a part of Ford’s turnaround plan under CEO Jim Farley, who took the helm in October 2020.

“As part of the Ford+ plan for growth and value creation, we are making strategic decisions about where to bring in providers with robust expertise and where to build the differentiated, always-on experiences our customers will value,” said Ford Motor Credit’s CEO Marion Harris.

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Ford expects to start rolling out Stripe’s technology in the second half of 2022, beginning with North America.

Last week, Ford’s market capitalization crossed $100 billion for the first, as investors are hopeful about its electric vehicle strategy and Ford+ restructuring plan.

Picture Credit: Ford