Ford will strengthen its e-commerce strategy

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Ford and online payment processor Stripe have reached a five-year deal for the automaker to bolster its e-commerce strategy.

In a statement, it was announced that Ford Motor Credit, the automaker’s financial services arm, will use Stripe’s technology to process digital payments in the North American and European markets.

Stripe will handle transactions for consumer vehicle orders, as well as bundle financing options for Ford business customers.

The automaker also plans to use Stripe to route a customer’s payment from its website to the correct local Ford or Lincoln dealership, CNBC noted.

According to the news outlet, the union represents one of the biggest customer gains for Stripe and is part of Ford’s turnaround plan under CEO Jim Farley.

Founded in 2010 by Irish brothers Patrick and John Collison, Stripe is the most valuable company in Silicon Valley, with a valuation of $95 billion. The company sells software that simplifies the acceptance of payments through the internet for businesses of all shapes and sizes.

“We are making strategic decisions about where to bring in providers with strong expertise and where to build the differentiated, always-on experiences our customers will value,” Marion Harris, CEO of Ford Motor Credit Company, said in a statement.

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

“During the pandemic, people became comfortable paying online for groceries, health care and even at-home haircut advice from barbers,” said Mike Clayville, chief revenue officer for Stripe. “Now, expect to be able to buy anything and everything online”.

According to CNBC, Ford’s market capitalization surpassed $100 billion for the first time last week, as investors applauded the company’s electric vehicle strategy and its Ford+ restructuring plan.

The company was the best-performing auto stock in 2021, beating the likes of Tesla and General Motors.

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