Diebold Nixdorf and NCR are getting more aggressive in their push to provide not only payment terminals but the software that makes them valuable.
Diebold Nixdorf on Tuesday morning launched a platform that supports remote access to self-service checkout and the ability to tailor technology stacks by individual stores. This follows the news on Monday that
The two developments demonstrate the onus on firms such as Diebold Nixdorf and NCR to escape the trappings of a business model based on selling point of sale terminals, ATMs and self-service kiosks. Many merchants are shifting to a cloud or app-based storefront, particularly as the global coronavirus pandemic rages on and consumers prefer the contact-free models of self-service and online shopping.
Diebold Nixdorf's platform, called DN Series Easy, supports different store environments and is meant to be a companion to Diebold Nixdorf's hardware.
"We actually looked at the automotive industry and interpreted from that," said Matt Redwood, the global head of self-service solutions at Diebold Nixdorf, referring to the practice of offering a base model and letting the customer add customizations on top of it. "What retailers can do here is add modules to that platform to build disparate solutions for each store in their network. We're moving away from a standards-type model or a one-size concept."
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Diebold Nixdorf's Redwood agreed. "There may be a vast reduction in cash usage at one store, but an increase at another," he said.
There are specific areas merchants need to address in self-service, due to the flight from cash that's accompanied the pandemic. Consumers are less inclined to physically interact with terminals either at a point of sale or a self-serve checkout.
The NCR-
NCR and Diebold Nixdorf both face a long-term threat from technology firms like Square, which offers digital card payment services for small merchants; and Stripe, which uses an API connection to support digital payments, authentication and other merchant services.
Legacy POS terminal players have large installed merchant customer bases, but have seen Clover, Square, and Stripe gaining on them in recent years, said Raymond Pucci, an associate director at Mercator Advisory Group.
"The emerging companies have stressed software and services for merchants that go beyond simply the payment transactions," Pucci said. "Additionally, legacy firms are bulking up and providing a wider array of payment services, as evidenced by last year’s
Diebold Nixdorf's DN Series Easy includes API and open tools that allow merchants to decide what parts of Diebold Nixdorf's technology to deploy, and link to third party sites.
"The retailer may want to run its own in-house software, POS and self-serve on the same platform," Redwood said, adding the payment processing technology would most likely be Diebold Nixdorf in a retailer's stack. "There may be AI or facial recognition tech they can combine to make a hybrid solution. Retailers are more mature now. Five years ago they wanted cost-cutting. Now they want flexibility."