NCR, formerly known as the National Cash Register company, helped develop the modern cash register beginning in 1881, when it bought the first such machine from an Ohio saloon owner named James Ritty.
Fast-forward 140 years, and the supplier of point-of-sale systems and other restaurant technology is once again hoping to get ahead of the curve with an acquisition—one that reflects how far we've come since the days of "Ritty's Incorruptible Cashier Machine."
Earlier this month, the Atlanta-based company unveiled a definitive agreement to acquire LibertyX, a software company that specializes in cryptocurrency. The deal will allow restaurants and other businesses that use NCR to accept payments using digital money like bitcoin, ethereum and others.
It is something the company has been thinking about for about two years, said SVP and Chief Technology Officer Tim Vanderham. But the initiative really gained steam in the past six months, as Vanderham began getting more and more questions from clients about NCR's plans for cryptocurrency.
While adoption among restaurants remains low, the buzz he was hearing prompted him to find an answer for those questions.
"I’ve gotta be ahead of my restaurants," Vanderham said. "When they want this, they’re not gonna want to wait a day, a week, a month, or however long it’s going to take me."
Cryptocurrency has experienced a surge of interest over the past year. The value of bitcoin, for example, hit record highs in April, and institutional investors have started paying attention. The Federal Reserve is even exploring the possibility of creating its own digital currency.
Restaurants are also catching on. Brands such as Landry's and Quiznos are starting to welcome cryptocurrency payments, as are a growing number of independents.
One thing slowing adoption is that accepting a new form of payment can be a headache. It can require new hardware and software that may not necessarily integrate with a restaurant's existing system, creating friction for both the restaurant and the guest.
"That’s why we bought LibertyX," Vanderham said. For the more than 100,000 restaurants that use NCR's software, "we’re going to plumb this into your existing capabilities."
That's one reason Vanderham believes NCR can make cryptocurrency payment widespread fairly quickly.
"We are literally going to have hundreds of thousands of physical touchpoints to interact with cryptocurrency next year" across the company's restaurant, retail and banking clients, he said.
The top benefit for restaurants, Vanderham said, is it gives customers the flexibility to pay how they want. Restaurants can choose to have the money immediately converted to U.S. dollars, so they don't have to take on the risk associated with some cryptocurrencies.
But Vanderham said some that are more aggressive in the cryptocurrency space will want to keep the payments as-is, or set a threshold for how much crypto they pocket each month.
"Is that gonna happen tomorrow? Technology-wise, we can do that tomorrow," he said. "Are customers going to adopt it? Not yet."
Another interesting use case that could still be a ways off: Allowing customers to buy and sell crypto at the restaurant. It is another feature of LibertyX's software, and could make sense for unbanked users who, for instance, notice a price change and want to take action immediately—even over lunch.
"I want to make it accessible wherever," Vanderham said. "I don't think it’ll be largely used, but if I’ve already got the technology, why wouldn’t I enable it?"
NCR works with restaurants of all sizes, from many of the largest chains (including McDonald's) down to small and medium-sized businesses. Interest in crypto is growing across the board, Vanderham said, though he could not divulge which companies specifically plan to use the new function once the LibertyX deal is done.
"The conversations are happening literally daily," he said.