Ford Motors has signed a five-year agreement with the online payment processor, Stripe, to scale the automobile’s e-commerce plan.
The agreement will see Stripe facilitate transactions for the automakers’ vehicle orders and reservations, pick up financial options for Ford’s commercial customers and also route customers’ payments.
This initiative will set off in the second half of 2022 and will begin with North America. The company also announced it will eventually extend to Europe. It should come to your notice that Stripe also raised $600 million last year and was valued at $95 billion. These funds are what the company is using to expand into Europe.
Ford Motors and Stripe’s coming together is part of an electrification and growth strategy that will see Ford investing $30 billion by 2025. This move is also in line with the automaker’s intention of investing in technology that will offer the greatest likelihood of capital returns.
Marion Harris, CEO of Ford’s financial arm, Ford Motor Credit Company also says that ‘it’s part of the Ford+ plan for growth and value creation, as they are making strategic decisions on where to bring in robust expertise and also to build the differentiated, always-on experiences our customers will value.
Stripe’s platform has other customers like Salesforce, Shopify and Deliveroo and they will be a key part of Ford’s product and service. For the first time, Ford’s market capitalization topped $100 billion last week.