Yahoo Finance NCR, LevelUp Partner to Ease Payment for Small Businesses - Analyst Blog
NCR Corporation (NCR) has integrated its cloud-based point-of-sale (POS) system, NCR Silver with LevelUp in a bid to provide an alternative mobile payment option to small businesses, especially fast casual restaurants and their customers. This is another innovative offering from NCR to attract customers.
LevelUp’s mobile loyalty and payment platform has seen quite a bit of success in recent times since it accepts payments through mobile devices while allowing customers to accrue/redeem their rewards with a single tap or scan. Moreover, the company’s application helps businesses to better understand their customers and accordingly manage their marketing campaign thereby boosting customer satisfaction and driving revenues.
NCR Silver provides merchants with a complete cloud-based POS system compatible with iPad, iPhone and iPod touch devices. Existing users of NCR Silver can activate the LevelUp app on their POS system. After the activation, customers will be able to pay their bills by scanning the unique QR codes generated by the LevelUp app during checkout.
NCR is targeting retail customers to boost its business volumes. The company’s strategy is evident from the innovative products and offerings it has introduced in recent times.
Last month, NCR Corporation announced that its NCR Silver will support bitcoin payment by year-end. Bitcoin is a digital currency which was created in 2009. More people are now opting for this mode of payment because it does not involve any middle men, transaction fee or the need to disclose identity to complete the process.
Demand for NCR Corporation’s POS system solution is on the rise among retailers and restaurant owners due to automation of bill payments and accounting. As a result, managers get ample time for customer interaction, leading to increased productivity. NCR Corporation strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011.
A survey conducted by AlixPartners in early 2014 found that 24% of customers who made purchases at POS locations through their mobile devices have scanned a barcode or QR code by using a mobile-payment service like LevelUp. This figure tops the list of mobile payment methods. Thus, NCR Corporation with its varied offerings of POS terminals and cloud-based solutions should be able to capitalize on this growth opportunity.
We believe that NCR Corporation’s growth in ATM and self-service kiosk spaces is encouraging, given the tremendous growth prospects in these markets. Continued product launches, growing popularity of its self-service offerings and synergies from acquisitions are the other catalysts. We consider that NCR Corporation’s commitment to protect the trust and integrity of the ATM channel has been inspiring banks and a host of other financial institutions to choose its services.
However, similar offerings from the likes of Diebold Corp. (DBD) and International Business Machines Corp. (IBM) could create some pressure.
Currently, NCR has a Zacks Rank #4 (Sell). Alternatively, investors may consider Micron Technology (MU), a better-ranked technology stock sporting a Zacks Rank #1 (Strong Buy).
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