Google Broadens Its Wallet Through Acquisition Of Softcard Tech
Google announced Monday that it had struck a deal with three of the country’s major cellular carriers Verizon, AT&T, and T-Mobile to procure “technology and capabilities” from Softcard. Which, before giving up on mobile payments, was a competing mobile wallet app.
The first fruit of success for Google will be the unblocking of Google Wallet on new Android phones as Verizon, AT&T and T-mobile will start preinstalling Google Wallet on position vacant by the former Softcard app.
Why Softcard app, which was built after the investment of hundreds of millions of dollars, was sold? Earlier, TechCrunch reported that Softcard was using up $15 million a month. Plus the sale price would be less than $100 million, the aforementioned report says, which means a big loss of capital for the carriers.
Commenting about its future, the company said in a report that “For now, Softcard customers can continue to tap and pay with the app. We will share more information with customers and partners in the coming weeks.”
Although it was speculated that everything was not smooth for the carriers, nobody could actually imagine that the service was going to make its enemy its master.
Google’s acquisition of Softcard has indeed eliminated the confusion factor — different brands for same tasks. Softcard was giving tough time to Google Wallet in mobile payments. That, perhaps, is another reason Google decided to encroach its competitor Softcard so to make its battle focused on Apple Pay.
Apple Pay was launched last year but has become a serious competitor to Google Wallet which was initiated in 2011.
Both services used the same contactless payment technology for operations. Precisely, NFC (near-field communication) is used to accomplish the transactions. However, there are few differences as well. At the heart of differences is the way a transaction is completed.
In case of Google Wallet, the transactions are routed through Google which enables Google to know in depth of its users — an ability which Apple Pay lacks. Apple Pay can not see much details of the transactions made.
Tap and Pay seems to be getting trendy in the US. After serious course of action being followed by Google and Apple in the market of mobile payments, Samsung is also ready to acquire a startup named LoopPay, through which users can make payments using phones on any payments terminal.