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Ford signs 5-year payments deal with Stripe to boost e-commerce


A Ford F-150 pickup truck for sale at a dealership on September 6, 2018 in Chicago, Illinois.

Scott Olson | beautiful pictures

Registered Stripe Online Payment Processor Ford Motor Company as a customer, in a five-year agreement to strengthen 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. know in a statement Monday.

Stripe will process transactions for consumer vehicle orders and reservations, as well as accompanying financing options for Ford commercial customers. The automaker also plans to use Stripe to transfer customer payments from its website to the correct local Ford or Lincoln dealership.

The event marks one of the biggest customer wins 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 the most valuable startup in Silicon Valley, with $95 billion valuation. The company sells software that makes it easy for businesses of all shapes and sizes to accept payments over the internet.

The company makes money by taking a small cut on every transaction it processes, counting Shopify, Sales force and Deliveroo as a customer. But it faces increasing competition from rival fintechs, such as Adyen and Checkout.com, which were valued at $40 billion in a $1 billion funding round last week.

Marion Harris, CEO of Ford Motor Credit Company, said: “We are making strategic decisions about where to provide suppliers with solid expertise and where to build a differentiated experience, always updates that our customers will value.”

Ford expects to begin rolling out Stripe’s technology in the second half of 2022, starting in North America.

“During the pandemic, people feel comfortable paying online for groceries, healthcare, even haircut tips,” said Mike Clayville, Chief Revenue Officer at Stripe. at home from barbers”. “They now expect to be able to buy anything and everything online.”

Ford’s market capitalization Topping 100 billion dollars for the first time last week, as investors applauded the company’s electric vehicle strategy and Ford+ restructuring plan. The company is best performing car depot in 2021, beat the likes of Tesla and Synthetic engine.

Stripe, meanwhile, remains privately held. There has long been speculation about when the company will list shares. ONE Bloomberg’s report in September said Stripe had held talks with investment banks about going public as early as 2022. But John Collison, Stripe’s president, told CNBC a month later that the company was in the process of going public. “very happy” in private mode.

Stripes hire Dhivya Suryadevara, a former chief financial officer of General Motors, as chief financial officer in August 2020.

– Michael Wayland of CNBC contributed to this report

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