Stripe inks eCommerce deal with Ford
The new collaboration between Stripe and Ford will enable new e-commerce experiences for Ford customers and dealers.
Ford and Stripe are two very different businesses. One was founded well over a hundred years. One was founded just over 10 years ago. One makes highly manufactured physical products. The other seeks to increase the GDP of the internet with software. And yet both are valued at roughly $100bn by investors.
Now the two are teaming up.
Ford Credit, the financial services arm of Ford, which provides financing options for car buyers has signed a five year deal with fintech giant Stripe to scale its e-commerce business.
As part of the deal, Stripe will be processing payments for consumer vehicle ordering and reservations, in North America and Europe only initially. This will help Ford’s online payments infrastructure scale online.
“During the pandemic, people got comfortable paying online for groceries, health care, even home haircut advice from barbers. Now, they expect to be able to buy anything and everything online. Ford is making e-commerce possible, too, and scaling that strategy with Stripe’s help,” said Mike Clayville, chief revenue officer at Stripe.
“We have been working with Ford to reimagine our e-commerce payment infrastructure. Stripe’s platform will help us deliver simpler, outstanding payment experiences in any channel customers choose and scale improvements faster,” said Marion Harris, Ford Motor Credit Company CEO.
“As part of the Ford+ plan for growth and value creation, 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,” Harris said.
The rollout of Stripe technology is expected to begin in the second half of 2022, starting in North America.
Ford and Stripe's partnership is an interesting example of the embedded finance trend whereby non-financial companies 'embedded' financial services directly into their digital channels. While Ford Credit has been around for half a century, the ability to scale its offering is clearly hugely speeded up online.