NCR Corp. (NCR) is making payments easier for customers. Recently, the company agreed to integrate Apple’s (AAPL) mobile payments system, Apple Pay, to help customers easily carry out credit and debit card transactions through smartphones and tablets.
Through this facility, NCR will provide retail and hospitality customers an easy, safe and secure way to pay with a single touch. This mobile solution will save time otherwise wasted in long queues at the check-out counters. The technology could be of great importance to NCR, helping it expand its existing client base.
This new method of payment will also help to reduce complexities in managing ATMs, point of sale, e-commerce and mobile payment or banking transactions. It will simplify transactions by providing privacy and protection of information.
For Apple Pay, the iPhone maker has teamed up with MasterCard Inc. (MA), American Express Co. (AXP), and Visa Inc. (V), to facilitate the use of the service, which will debut in the U.S. in October. We believe that the adoption of this mobile payment technology, which is targeted toward retailers, and NCR’s years of experience in serving the retail sector will allow it to forge ahead of its peers.
It is worth mentioning that there are other providers of similar credit and debit card mobile device payment services, including Twitter’s (TWTR) Square, eBay’s (EBAY) PayPal Here and Intuit's GoPayment and VeriFone Systems Inc. We believe that Apple’s entry into this space will stimulate broader adoption of the technology, as Apple’s loyal customer base is a big advantage. Thus, this integration will help NCR to strengthen its position in the point of sale (POS) market and enhance its customer base.
NCR Corporation is a global technology company and a world leader in consumer transaction technologies that process more than 485 million consumer transactions per day.
Furthermore, NCR’s growing exposure in ATM and self-service kiosk spaces is encouraging, given tremendous growth prospects in these markets. Continuous product launches, growing popularity of its self-service offerings and synergies from acquisitions are catalysts.
However, similar offerings from the likes of Diebold Corp. (DBD) and IBM (IBM) could create some pressure.
Currently, NCR has a Zacks Rank #3 (Hold).
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