Tuesday's Headlines: Ford Strikes A Deal With Stripe
There are no market movers today as the market was closed yesterday in observance of Martin Luther King Jr. Day.
1. Ford (F) has entered into a five-year deal with the international payments company, Stripe. The expectation is to begin integrating its payment technology in the first half of 2022 and begin rolling out online payment optionality in the U.S. and Europe. The deal will assist Ford with its overall e-commerce strategy when it comes to online pre-orders, taking deposits for reservations, allocating online payments to the correct car dealership instantly, and providing financing alternatives for customers. As Stripe's management noted, people "expect to be able to buy anything and everything online.” and Ford is complying in order to increase the long-term value of its business model. Read the full story here.
2. Amazon (AMZN) has delayed its removal of Visa payments for its amazon.co.uk site — which includes the UK and Ireland — following a public backlash. Without a concrete plan in place to replace the payment processing giant, it’s no surprise Amazon is considering holding off amid uproar from customers. It’s estimated that Visa is the primary card issuer in both regions with a share of over 80% in both markets after all. Some believe that Amazon has been seeking better terms from the payment processor following increased fees post-Brexit, but the e-commerce giant will need to solve the issue or negotiate to ensure it doesn’t lose ground in its second-biggest market in Europe. Read more here.
3. Kayak, a Booking Holdings (BKNG) subsidiary, has added Southwest Airlines to its platform. Kayak is a price comparison and travel options platform, similar to its parent company. The deal allows travelers to still claim their travel points or other rewards from Southwest but it will provide the company with cost savings and a more efficient method to track expenses. Currently, Kayak for Business has 10,000 small-to-medium-sized businesses signed up for its product, but this agreement could provide a healthy boost going forward. Read the full press release here.
Get this week’s full earnings calendar here.