Ford Enters Online Payment Market Through Partnership with Stripe

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American automaker Ford is entering the e-commerce market by partnering with online payment startup Stripe.

According to CNBC on the 17th (local time), Ford's financial services subsidiary Ford Credit Company has signed a five-year contract with Stripe. Ford plans to introduce online payment methods starting in North America and later in Europe in the second half of 2022.

Stripe will build an online payment integration system not only for ordering and reserving Ford vehicles but also connecting Ford or Lincoln car dealerships nationwide through the Ford website. Previously, dealerships did not have an online payment system, but through the partnership with Stripe, they aim to enhance the convenience of online payments.

Morgan Harris, CEO of Ford Credit Company, said in a statement, "We have strived to differentiate ourselves in experiences that customers value," adding, "Collaboration with Stripe, a leading company in online payments, is a strategic decision."

With this partnership, Stripe secures one of its largest clients. Founded in 2009 by Irish brothers Patrick Collison and John Collison, the electronic payment service startup has rapidly grown since the COVID-19 pandemic. Stripe offers a simpler system than PayPal, which holds a dominant position in online payments, while reducing per-transaction card fees by about half. Major clients of Stripe include Shopify, Salesforce, and Deliveroo.

CNBC reported, "This partnership is the largest client acquisition for Stripe to date."

This content was produced with the assistance of AI translation services.