Ford signs 5-year deal with Stripe to scale e-commerce – Techdoxx

Deepak Gupta January 17, 2022
Updated 2022/01/17 at 8:21 PM

Ford Motor Company has signed a five-year deal with Stripe, an online payment processor, to expand the automaker’s e-commerce capabilities. Stripe will facilitate vehicle ordering and reservation transactions, handle financing options for Ford’s commercial customers, and route customer payments from the automaker’s website to the correct local Ford or Lincoln dealer.

Ford plans to begin rolling out Stripe technology in the second half of 2022, starting in North America, but with plans to launch in Europe, according to the company. Last year, Stripe raised a $600 million round with a valuation of $95 billion, funds the company said it would use to expand in Europe.

The partnership with Stripe is part of Ford’s larger Ford+ restructuring plan, an electrification and growth strategy in which the company plans to invest $30 billion by 2025. The strategic decision also aligns with much of the The auto industry’s move toward investing in technology that will offer the greatest likelihood of capturing returns, specifically in the short term, as the pandemic has hampered automakers’ ability to meet customer demands. And with Ford and Lincoln preparing to add multiple subscription services, such as, most recently, Amazon’s Fire TV, it makes sense for the automaker to establish a robust digital payment platform.

“As part of the Ford+ plan for growth and value creation, we are making strategic decisions about where to bring in suppliers with robust expertise and where to build the differentiated, always-on experiences that our customers will value,” said Marion Harris, CEO of The Services arm. Ford’s financial institution, the Ford Motor Credit Company, in a statement. “Stripe has developed a strong background in user experiences that will help provide easy, intuitive and secure payment processes for our customers.”

Stripe’s platform, which has other renowned customers like Deliveroo, Shopify and Salesforce, will be a key part of Ford’s technology stack of products and services, the company says. The payment processor should help create more efficiencies in a variety of e-commerce payments, which will also include collection services.

So far, investors are reacting positively to the Ford+ plan. The automaker was best performing car inventory in 2021, about Tesla, General Motors and even the over-the-top new Rivian. Last week, Ford’s market capitalization surpassed $100 billion for the first time.

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