ATM and POS manufacturer, NCR Corporation (NCR - Free Report) announced that it has inked a deal with Performance Food Group Company (PFGC - Free Report) , the food and food-related products distributor, targeting the restaurant industry.
Per the deal, Performance Food Group (PFG) will implement NCR’s cloud-based point-of-sale (POS) platform, NCR Silver, to restaurants in the United States. However, the financial details of the deal were kept under wraps. Leveraging NCR's restaurant technology, which includes hardware and software technology, PFG’s will help better serve its customers by reducing transaction time along with offering them loyalty discounts and promotions.
The POS solution helps restaurant staff to take orders and execute them faster. The solution also helps to process bill payment fast, thus cutting down waiting time for patrons. With NCR Silver: Table Service, customer retention, acquisition of new customers, streamlined operations/food services, and staff training becomes simpler for restaurant owners.
An increasing number of people are now opting for this mode of payment as it does not require middlemen, transaction fee or the need to disclose identity to complete a transaction.
NCR Silver will be useful for U.S.-based merchants as they can turn their tablet into a complete POS system that can run on numerous devices. Subscription of NCR Silver core app and NCR Silver Pro Restaurant Edition are supported on Apple Inc.’s (AAPL) iOS and Android platform devices.
NCR POS: Massive Growth Opportunity
The demand for NCR’s POS solution is growing among retailers and hospitality industries as it facilitates the automation of bill payment and accounting. As a result, managers get ample time for customer interaction, leading to increased productivity. NCR strengthened its position in the POS market through the acquisition of Radiant Systems in August 2011.
According to Global Market Insights, the global market size of POS terminals will reach $103.52 billion by 2023. The report also says that market size of POS terminals, which at the end of 2015 was 32 million units, will reach 126 million units by 2023, reflecting a CAGR of 18.3% through the period.
Another research firm stated that the global POS terminal market, valued at $42.14 billion in 2015, is expected to reach $113.27 billion by 2024. Consequently, NCR with its varied offerings of POS terminals and solutions should be able to capitalize on these growth opportunities.
NCR stock has gained 3.3% year over year, substantially outperforming the 12.5% decline witnessed by the industry it belongs to.
NCR’s growing exposure in the ATM and self-service kiosk space is encouraging, given the tremendous prospects in the respective markets. Continuous product launches, growing popularity of its self-service offerings and synergies from acquisitions are catalysts. Continuous deal wins also drive growth.
Softness in the ATM business in mature markets, competition from Diebold Inc. (DBD - Free Report) and HP Inc. (HPQ - Free Report) and a high debt burden remain concerns.
Currently, NCR carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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