A Ford F-150 pickup truck is displayed for sale at a dealership September 6, 2018 in Chicago, Illinois.
Scott Olson | Getty Images
Online payment processor Stripe has won Ford Motor Company as a customer in a five-year deal aimed at boosting the auto giant's e-commerce strategy.
Ford Motor Credit Company, the automaker's financial services arm, will use Stripe's technology to process digital payments in markets across North America and Europe, the companies said in a statement Monday.
Stripe will process vehicle order and reservation transactions for consumers and bundled financing options for Ford commercial 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.
The merger represents one of Stripe's biggest customer wins to date and is part of Ford's turnaround plan under CEO Jim Farley, who took the helm in October 2020.
Founded in 2010 by Irish brothers Patrick and John Collison, Stripe is Silicon Valley's most valuable startup, valued at $95 billion. The company sells software that makes it easy for businesses of all shapes and sizes to accept payments over the Internet.
The company, which makes money by taking a small percentage of every transaction it processes, counts Shopify, Salesforce, and Deliveroo among its customers. But it faces growing competition from rival fintechs like Adyen and Checkout.com, which was valued at $40 billion in a $1 billion funding round last week.
"We are making strategic decisions about where to onboard vendors with solid expertise and where to build the differentiated, always-on experiences that our customers will value," said Marion Harris, CEO of Ford Motor Credit Company, in a statement.
Ford expects to roll out Stripe's technology in the second half of 2022, starting with North America.
"During the pandemic, people have become accustomed to paying online for groceries, health care, and even haircut advice from stylists at home," said Mike Clayville, Stripe's chief revenue officer. "Now they expect to be able to buy anything and everything online."
Ford's market cap surpassed $100 billion for the first time last week as investors hailed the company's electric vehicle strategy and Ford+ restructuring plan. The company was the best-performing auto stock in 2021, beating out the likes of Tesla and General Motors.
Stripe, on the other hand, is still privately owned. There has long been speculation about the company's IPO. According to a September Bloomberg report, Stripe had been in talks with investment banks to go public as early as 2022. But Stripe president John Collison told CNBC a month later that the company was "very happy" to remain private.
Stripe hired Dhivya Suryadevara, former Chief Financial Officer of General Motors, as its Chief Financial Officer in August 2020.
– CNBC's Michael Wayland contributed to this report