The search giant plans to acquire mobile payments company Softcard. This significant move allows Google to directly competing with Apple Pay. The acquisition gives enough ammunition to Google with Apple. The buyout will be aggressive push from Google in the mobile payments world.
At present Google offers its Google Wallet services, after acquisition of Softcard will further consolidate the market. Softcard owned by three mobile companies in the US namely AT & T, Verizon and T Mobile USA. Initially these 3 companies named the company ISIS later changed to Softcard. This move came after terrorist organization ISIS came into force.
Softcard uses NFC technology that Apple Pay uses them dedicated towards Android and Windows environment. More than 200,000 merchant establishments that include Subway and McDonalds accept Softcard payments. The Softcard app users can activate American Express, Chase or Wells Fargo.
PayPal, eBay’s payment company is also interested in acquiring Softcard. However it is not confirmed from PayPal sources. Softcard owners prefer Google, because of the fact that most of the phone distributed by three companies are android based. The search giant pays some of the advertisement revenues with the companies it acquires.
The Softcard deal may be valued at $100 million, however it would have commanded more. Softcard struggled to catch on with the latest trends in the payments world. Meanwhile it has downsized its staff by laying 60 people. The company is taking positive steps by reducing costs to strengthen its business.
Softcard undertook new advertising campaign last November, 2014. The company introduced their new mascot ‘Tappy’. In the new campaign the company started educating consumers on Softcard and mobile payments in a fun, social and sharable way.
In fact Softcard’s strength lies in the patents world. Softcard has more than 120 registered patents in their kitty.Softcard’s acquisitions will give wings to Google payment services may merge their wallet services and spruce up the app and give further much needed fillip.