According to statements released by the companies, the deal will see Ford’s financial service arm known as Ford Motor Credit Company, use Stripe’s technology to process all its digital payments in markets across North America and Europe. What this means is that Stripe will take care of vehicle orders and reservations of consumers as well as bundled financing options for the automaker’s commercial customers.
Ford also has plans of using Stripe to send customers’ payments from its website to the correct local Ford or Lincoln dealer. The deal is a big win for both parties but most especially for Stripe because Ford is a big deal and one of the company’s biggest clients. Other big clients include Shopify, Deliveroo and Salesforce, and makes money from commissions from every transaction it processes. It also sells software that makes businesses, irrespective of how big and how small they are, be able to collect payments conveniently over the internet.
Speaking on the deal, Marion Harris, the CEO of Ford Motor Credit Company said in a statement that “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”, emphasizing that the company expects to rollout Stripe’s technology by the second half of the year and will start with North America.
Mike Clayville, Stripe’s Chief Revenue Officer, also said that “During the pandemic, people got comfortable paying online for groceries, healthcare, even home haircut advice from barbers. Now they expect to be able to buy anything and everything online”.
Ford started the year on a great note. Its market capitalization notched $100 billion for the first time last week and the company’s stock was the best performing in 2021 surpassing Tesla’s and that of General Motors.
The deal with Stripe is expected to push its e-commerce strategy as well as take its operations to the next level.