The car company Ford Motor signs a payments deal with Stripe. The deal will strengthen the e-commerce strategy. It will use Stripe’s technology to process payments now. Stripe will allow digital payments across North America and Europe.
The online processor company will take vehicle orders. It will also bundle financing and reservation. The payments deal will route the customer’s payment. The payment will migrate from Strips to local Ford.
The five-year payments deal is the major client win for Stripe. It is one of the growing start-ups in Silicon Valley. The net value of the start-up today is $95 billion. The company builds software for payment acceptance.
It is competition for firms that take charges on processing the transaction. The one like Shopify & Deliveroo. However, there are rivals like Adyen and checkout.com. They hold a value of $40 billion and $1 billion.
Marris Harris, CEO of Ford Motor, states the tie-up as “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.”
Ford will incorporate the services from this year. This was because people shifted to digital payments. People pay digitally for even smaller things now. For example groceries, food & even health care. Ford wants to bring in the same function for vehicles.
Ford recently topped $100 billion. The electric vehicle strategy was a great hit. The company was the best performing last year. It was a great year. The company beat big Tesla and General Motors. Ford’s restructuring plan was also a great player.
The investment with Stripe will increase customer acquisition. It will serve as a turn-around plan for Ford. Stripe is a privately owned company. The Stripe may go public soon. But, the timeframe is still under the cloak: John Collison, President at Stripe’s plan to stay private.