Stripe, the billion-dollar startup that provides payment infrastructure to companies like Lyft and Shopify, has announced a partnership with Ford to help the automaker overhaul its online commerce.
The Partnership
The deal marks Stripe’s first major partnership with a traditional company outside of the tech sector. The pact will have Stripe handling online payments for Ford’s websites, including Ford.com and Lincoln.com, as well as its mobile apps, allowing customers to buy cars and parts or sign up for services like test drives.
Stripe will also work with the auto giant to create a new suite of payment tools that Ford employees can use internally or offer to third parties such as dealerships, rental car companies, and auto insurers that want to revamp their e-commerce operations.
As part of this effort, the companies will jointly develop an application programming interface (API) that allows software developers at other firms to plug into Stripe’s payment technology.
Expanding into Other Products
“We’re not just partnering with them; we’re also building a product together,” says Patrick Collison, CEO of San Francisco-based Stripe. “It’s quite rare for a company like Ford to make such a commitment.”
The hope is that this partnership will allow Ford to expand beyond just selling cars and into other products.
“We’re looking at our business holistically,” said David McClelland, vice president for U.S. Marketing at Ford. “We see an opportunity to leverage our brand beyond just automobiles.”
Stripe will be used for multiple different projects within Ford, including powering its new payment infrastructure, providing tools for developing new apps, and helping create new consumer experiences.
Auto Sellers Focusing on eCommerce
Ford’s collaboration with Stripe points to how automakers are increasingly relying on outside players to help them update their digital offerings. Honda built a new mobile app with help from the software company Salesforce, while Hyundai tapped the tech provider Lucid Motors to redesign its website and mobile apps.
The focus on e-commerce comes as carmakers expand beyond their traditional brick-and-mortar business model, offering shoppers new ways of buying vehicles online. Earlier this year, Ford launched an online store in Europe where customers can build their cars and place orders directly with the automaker.
The retailer Carvana has also introduced a feature that lets customers purchase used cars through voice assistants like Amazon’s Alexa or Google Assistant.
Author bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of Best Payment Providers. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.