NCR Buys Out JetPay

E-payment specialists including PayPal and Stripe are increasingly focusing on face-to-face transactions as they further aim for consumers and in-store implementation, while also capturing additional flows. In this competitive context the US POS device manufacturer NCR acquires the processor JetPay.

The transaction will consist in a cash tender offer of $5.05 per JetPay share. The purchase price should reach $184 million. This buyout has been approved by each company’s board of directors.

NCR intends to integrate JetPay’s cloud-based e-payment into its enterprise POS solutions for convenience stores and the hospitality industry. The point for them is to build a comprehensive, secure, Cloud-based offer.

This transaction should be closed by year-end, if approved by relevant competition authorities.

Comments – Acquisition strategy: NCR back in the race

This agreement is consistent with these groups’ long-term development strategy intended to enhance merchants-oriented services and generate additional revenue. A few months ago, NCR also launched a new payment solution to assist merchants and restaurants interested in processing their payments in real time. They now bet on a FinTech to improve their range of software products, while securing their proposition on the value chain: from POS checkout solutions (hardware and software) to payment processing activities. JetPay processed $5.3 billion in flows for 10,000 merchants in 2017.

NCR tries to win back their position on a highly competitive market where they have to face companies including Stripe, PayPal and Square, who regularly expand their reach. Also, this acquisition further stresses the consolidation trend which has been speeding up over the past months on the payment market.