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Ford signs five-year payments deal with Stripe for e-commerce drive

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A Ford F-150 pickup is up for sale in Chicago, Illinois on September 6, 2018.

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Stripe is an online payment processor Ford Motor CompanyIn a five year deal to support the automotive giant’s ecommerce strategy, as a customer.

Ford Motor Credit Company is the financial arm of the automaker that will make payments digitally in North America and Europe using Stripe technology, according to a statement released Monday by the companies.

Stripe will manage transactions for Ford’s consumer customers, including reservations and vehicle orders. Stripe is also planned to be used to transfer a customer’s payments from the website to the appropriate local Ford or Lincoln dealer.

This tie-up is one of Stripe’s biggest wins to date and it forms part Ford’s turnaround plan led by CEO Jim Farley who assumed the helm of Ford in October 2020.

Stripe was founded in 2010 by Irish brothers Patrick Collison and John Collison. It is one of the most valued start-ups in Silicon Valley. $95 billion valuation. This company offers software to make it easy for small and large businesses to accept online payments.

It takes a tiny cut of each transaction that it processes to make money, and counts such names as Shopify, Salesforce DeliverooCustomers. However, it is facing increasing competition from competitors fintechs such AdyenCheckout.com, valued at $40Billion after a $1B funding round.

Marion Harris, the CEO of Ford Motor Credit Company said that they are taking strategic decisions on where to place providers with strong expertise, and how to create differentiated experiences for customers.

Ford plans to roll out Stripe’s technology by the end of 2022. This will begin in North America.

Stripe’s chief Revenue Officer Mike Clayville stated that during the pandemic many people were able to pay online for food, medical care and home haircut advice. “Now they expect to have the ability to purchase anything and everything online.”  

Ford’s market capitalization topped $100 billion for the first timeLast week investors cheered Ford+’s restructuring plan and electric vehicle strategy. It was named the “Best Company” best-performing auto stockIt will surpass the 2021 record of Tesla General Motors.

Stripe remains privately-held. There has been long-standing speculation as to when Stripe will become public. There is an answer. Bloomberg reportIn September, Stripe said that it had met with banks to discuss going public in 2022. CNBC heard from John Collison (President of Stripe) a month later, that Stripe is not planning to go public. “very happy” staying private.

Stripe hired Dhivya SuryadevaraIn August 2020, General Motors’ former chief financial officer, was appointed its finance chief.

This report was contributed by Michael Wayland, CNBC.

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