Every dark cloud presents a re-terminalization opportunity

NCR posted worse than expected results this week citing “ongoing data security concerns, which were heightened in the third quarter. This is causing retailers to shift IT priorities, resources, and capital spending.”

The US retail data breaches have been well publicised and resulted in a much delayed decision to join the rest of the world and implement chip & PIN.

This means that pretty much every payment terminal in the USA needs replacing; hence less capex available for NCR’s products.

Every cloud has silver lining and Verifone, who have been struggling for years, are naturally delighted with what they refer to as the “re-terminalization” of the world’s largest economy. Even better, they think that Apple Pay will drive a 30% increase in the total number of terminals in the market.

Slide from Verifone's Sep 14 analyst deck.
Slide from Verifone’s Sep 14 analyst deck.



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