NCR Corporation (NCR - Free Report) has won a deal from a new banking client. Recently, the company secured a contract from the largest bank in India “State Bank of India” (“SBI”) to deploy roughly 600 NCR SelfServ 32 Intelligent Cash Deposit ATMs across India.
This is one of the largest orders made by the State Bank of India for its cash deposit ATMs in recent times. With the implementation of the new NCR SelfServ intelligent deposit ATMs, SBI customers can avoid the long queues at its branches as well as avail cash deposits cash using these machines beyond banking hours.
These ATM’s will help SBI reduce the cost incurred during cash transactions as it will be able to shift most of its deposit transactions from the banks to the ATM’s. Normally, a transaction costs roughly Rs. 40 to Rs. 45, which will come down by approximately 66.0%.
As per a latest report by RBR Research and the ATM industry association, the global ATM space will likely grow at a rapid rate, especially cash withdrawal services in emerging markets. The report suggests that ATM cash withdrawals will grow by 90.0%.
The under-penetrated markets of the Asia-Pacific, the Middle East and Africa are deemed to see the strongest growth. Thus, these regions appear to be apt for companies like NCR to focus on.
NCR has been constantly inking new deals, which are expected to be beneficial for the company going forward. A couple of months back, NCR agreed to provide support to eBay Inc. (EBAY - Free Report) to expand its mobile payment business, PayPal. As per the terms of this agreement, the PayPal mobile service will be integrated into NCR's POS technology, enabling customers to pay their bills at restaurants using a smartphone.
However, with more players introducing new products, competition is heating up. NCR’s broad exposure and years of experience in the ATM space is encouraging and could help it stay ahead of its traditional competitors Diebold Inc. (DBD - Free Report) and Wincor Nixdorf.
Currently, NCR Corp. has a Zacks Rank #2 (Buy). Investors can also consider other technology stocks such as Faro Tech Inc. (FARO - Free Report) , carrying a Zacks Rank #1 (Strong Buy).