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Ford signs a 5-year deal with Stripe to scale e-commerce – TechCrunch

Ford Motor Company has signed a five-year deal with Stripe, an online payment processor, to scale the automaker's e-commerce capabilities. Stripe will facilitate transactions for car orders and reservations, manage financing options for Ford's commercial customers, and direct customer payments from the automaker's website to the appropriate local Ford or Lincoln dealer.

Ford plans to start rolling out Stripe's technology in the second half of 2022, starting with North America, but with the aim of also rolling out in Europe, according to the company. Last year, Stripe raised a $ 600 billion round worth $ 95 billion, funds the company said it would use to expand in Europe.

The connection with Stripe is part of Ford's major restructuring plan for Ford +, an electrification and growth strategy in which the company plans to invest $ 30 billion by 2025. The strategic decision is also in line with much of the automotive industry's move towards investing in technology . which will provide the greatest likelihood of capturing returns, especially in the short term, as the pandemic hampered car manufacturers' ability to meet customer demands. And with Ford and Lincoln ready to add a range of subscription services, most recently Amazon's Fire TV, it makes sense for the automaker to establish a robust digital payment platform.

"As part of the Ford + plan for growth and value creation, we make strategic decisions about where to look for providers with robust expertise and where to build the differentiated, always-on experiences our customers will value," said Marion Harris , CEO of Ford's financial service arm, Ford Motor Credit Company, in a statement. "Stripe has developed strong expertise in user experiences that will help provide our customers with easy, intuitive and secure payment processes."

Stripe's platform, which has other big name customers such as Deliveroo, Shopify and Salesforce, will be an important part of Ford's product and service technology stack, the company says. The payment processor will help create more efficiency in a range of e-commerce payments, which will also include charging services.

So far, investors are reacting positively to the Ford + plan. The carmaker was the best-performing car stock in 2021, over Tesla, General Motors and even the new and hyped-up Rivian. Last week, Ford's market value reached $ 100 billion for the first time.

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