Hello. I'm Ashley Almanza, Chief Executive of G4S, and I'm joined today by my colleague, Brian McCabe. Brian is President of our Retail Cash Solutions business, and it's our pleasure to present you with an update on this very exciting, highly valuable, and rapidly growing business in G4S. Retail Cash Solutions is currently focused on the North American market, and it fits within our retail technology segment. Our retail technology segment also includes our Cash360 and Deposita solutions, which we sell in Africa, Asia, and Europe. Each of our solutions is delivering strong growth and margins, and this, of course, is underpinned by G4S's intellectual property.
Our Retail Cash Solutions business in North America is the focus of our presentation today, and it accounts for roughly half of all the revenues in our retail technology segment. In Retail Cash Solutions, we have created from scratch a highly valuable software and service business. It's a market-leading business because it significantly improves the efficiency, control, and convenience of cash handling for major retailers, and it does so in a way that is unmatched by any of our competitors.
Retail Cash Solutions offers a unique customer value proposition, and our business model has enabled us to build a growing, recurring revenue stream. The total addressable market for Retail Cash Solutions is measured in billions of dollars, and we have a clear first-mover advantage, which is underpinned by G4S's patented technology. We believe that this has created very high and sustainable barriers to entry. The strength of our position in this growing market is reflected in the rapid growth of our business, which is also delivering strong margins and cash flow.
With very attractive financial and business characteristics, Retail Cash Solutions benchmarks well with technology and software businesses, and as such, it provides material value upside within and for G4S. As you know, in recent years, we've been investing in technology and innovation at G4S, and part of that investment enabled the creation of Retail Cash Solutions, which we launched in 2015. In a few short years, G4S Retail Cash Solutions has become the clear and undisputed market leader in the big box segment in the United States, and in addition, it has already established a very strong position in the recently entered small box market.
G4S Retail Cash Solutions now serves more than 10,000 retail locations across North America, handling more than $2 billion in 2020. This business has grown organically, from zero revenues in 2014 to $170 million in 2019, with profits of $30 million. Over the medium term, we're targeting average revenue growth of 25% per annum, with strong, sustainable margins and high cash conversion. As Brian will explain, our solution is unique, and it delivers very substantial benefits to our customers, in effect creating a huge new addressable market.
In addition to the 10,000 retail locations, which are already operational in North America, we have a backlog of over 11,000 stores still to be mobilized, with the majority of these over the next 18 months. I'll now hand you over to Brian, who will take us through this exciting business in more depth.
Thank you, Ashley, and welcome, everyone. We estimate that our addressable market is worth over $8 billion in the US alone, and which today has a very low penetration of these types of cash management solutions. $2 trillion of cash is in circulation in the US alone. In the US big box market, we are the number one market leader with no credible competition in sight. We have established a strong position in the small box market, which we entered much more recently and have deliberately focused on small box retailers with a large number of stores. With our strong customer proposition, we are well positioned to take advantage of this market opportunity.
There exist material opportunities in the US banking sector, where we have a solution that optimizes cash handling activities and associated costs across the branch network. In addition, as a reminder, around 70% of all payments globally are still made in cash, so there is also a very large opportunity internationally that we are working on today. So, a total addressable market of more than $13 billion. For retail customers, ordering, dispensing, collecting, counting, and getting cash to the bank takes time. They want to reduce risk and handling costs and improve cash flow.
That's why G4S created the market-leading solution, G4S Retail Cash Solutions. With G4S's Retail Cash Solutions, the registered float is made up automatically from cash recycled in the store, reducing labor time, total float volumes, cash leakage, and cash transportation visits. Through our program, the retailers are provided with bank-owned cash and same-day credit for net cash sales, resulting in significantly improved cash flow and working capital. Through our cash forecasting capability, there is a reduction in the amount of cash deposits at the bank vaults that results in lower processing fees for big box retailers.
As a result of these clear customer benefits, we won the world's largest retailer as our anchor customer in 2016. Today, four of the top 10 US-based retailers are our customers and have a typical contract length of five to seven years. And what makes us confident we can grow and retain our market-leading position across this huge market? As can be seen on this slide, we are the market leader because our competitors' offering is more limited. The competition focuses either on cash balancing and reconciliation or on logistics.
Our offering, in terms of an end-to-end solution, breadth of customer offering, proprietary software, and integration with leading bank partners is unmatched today. Let's now dig into RCS in more detail. As you can see described on the infographic on the right-hand side of the slide, it is a market-leading infrastructure integrating the retailer's cash office, store front end , accounting system, and the respective depository banking partners to engage and drive efficiencies, which I will now let you review at your leisure. In simpler terms, as summarized on the left, the G4S Retail Cash Solution is based on industry-leading technology.
G4S is a cloud-based cash management software platform customized for retailers of all sizes. It is integrated with customers' accounting and banking systems. Same-day credit ensures automatic bank crediting for daily cash sales. Koleos, our cash management software platform, drives end-to-end retail cash management and offers insight into stores' data, enabling RCS to make information-based recommendations for continuous improvement for our retail customers. What does that mean in terms of the RCS subscription-based business model?
We receive fees per store every month, and the contract duration is typically five to seven years. We have an asset-light business with recurring high-margin service revenues with long-dated contracts. Our recurring service revenues have grown at a compound rate of 48% per year from 2016 to 2019. The business has also had resilient revenues in 2020, despite significant disruption for our retail customers due to COVID-19 putting new store installations on hold for most of the year. This, combined with our recent wins, means we have a large installation backlog of more than 11,000 stores, which are now mobilizing in Q4 into 2021.
In the spring and summer, existing big box retailers required 70% increases in cash floats due to changing consumer patterns and government stimulus. We provided excellent business continuity and helped them through a very challenging time. We know we cannot be complacent. We look for continuous improvement through strong customer engagement. We remain confident in maintaining a leading position. Our software is deeply embedded within our retail customers' and banking partners' accounting systems. Our customers and banking partners have gone through intensive operational and technology due diligence before adopting the solution.
We have undisputed leadership in the big box market, and the expertise and knowledge we have gained with big box has helped us fast-track in the small box market. 2020 has been about supporting our customers. Against this backdrop, though, we have continued to win major new customers, which underpins our confidence in forward revenue growth. That confidence is underpinned by good visibility in 2021 and 2022. We have significant revenue visibility from the current backlog, and we are running or have committed pilots representing nearly 11,000 more stores and a sales opportunity pipeline of more than 10,000 additional stores.
This is what we can see today. Let us now look into the future. We plan to continue to build on our market-leading position in big box and increase our penetration of the North American market and continue to expand and accelerate our penetration of medium and large retailers with small box formats, a $5 billion addressable market in total. We are looking to commercialize solutions for the $3.3 billion banking sector opportunity, as well as scaling our banking relationships for the retail proposition.
And then lastly, there is a significant $5 billion opportunity internationally, where around 70% of transactions are still settled in cash, expanding outside of North America with new and existing customers. That supports our growth ambition of 25% revenue growth per annum over the medium term. As well as very attractive growth characteristics, this business also has high margins and strong cash conversion.
The margins are solidly underpinned by high margin on services, scaled benefits with hardware providers, pricing and opportunities given market leadership and high operating leverage, installed base density, and well-invested technology. I would now like to hand back to Ashley.
Thank you, Brian. So, to summarize the financial model, with service gross margins of more than 30% combined with the 25% per annum revenue growth target, our ambition is to generate medium-term PBITA margins of between 15% and 20%, and as an asset-light business, convert free cash flow at over 100% per annum. As we've just seen, Retail Cash Solutions is a software and service business. What's more, it benchmarks very well against the key metrics which drive valuations for financial software businesses. It has a very strong growth profile. It has strong margins. It has a growing and visible recurring revenue stream.
It has robust end-market dynamics with a solution that addresses customer efficiency, control, and convenience at the core of their operations. And of course, our intellectual property is at the heart of G4S Retail Cash Solutions, and that has created substantial barriers to entry.
Benchmark businesses with these characteristics typically command a premium valuation of around 23 times forward earnings before interest and tax, and given its sustainable leadership position and financial profile, there's every reason for G4S Cash Solutions to be valued on a similar basis, so in conclusion, G4S Retail Cash Solutions, we have created a market-leading software and service business that possesses a strong and sustainable first-mover advantage.
G4S Retail Cash Solutions is unique, and it has a very attractive financial profile. It benchmarks very well with software and service businesses, and we believe that it represents material value upside within and for G4S. Thank you for watching our presentation today, and we look forward to providing you with a further update as we continue to unlock the exciting potential of this unique and highly valuable business.