Google is set to acquire Softcard, a mobile payment enterprise to compete with Apple Pay for about $100 million. Formerly known as ISIS, Softcard was started with investments from AT&T, Sprint and T-Mobile in 2010.
In January, Softcard had laid off about 60 employees due to consolidation phase and has been losing about $500,000 per day. This led to the low base price for acquisition by Google though reports reveal that even PayPal or Microsoft might turn out to be potential bidders. The firm offers similar services like Apple Pay by allowing users to pay through NFC without the need to use cash or card.
Google declined to comment on the reports stating that it did not have a comment, background, deep background, verbal or any non-verbal response to the rumors. Softcard spokesperson mentioned that the layoffs were a way to reduce costs and strengthen business. He added that consolidating all operations into the Dallas and New York offices will position the company in a marketplace while maintaining focus on “serving the market”.
Softcard, the brainchild of the three carriers entered the market by offering NFC payments and claims that about 200,000 merchants in the US are accepting payments through its Android and Windows apps. Reports reveal that Google might be acquiring Softcard as it has applied for several patents, totaling to 120. In case the negotiations fail, partners AT&T or Verizon might acquire the service as the companies have also been keen on providing mobile payment services.
Employees at Softcard indicated that the company has been in a depression for about six to eight months and were thinking of the worst. Ed Busby, a former chief officer at the company claimed that the signs are positive for mobile payments and attributed to the rise of Apple Pay. It remains to be seen if Google can successfully negotiate the deal of the service will be operated by any of the joint venture partners.[ Via ]