Google to buy mobile payment company, Softcard, for $100 million

There has been reports that Google is planning to buy mobile payments company Softcard — a move that could facilitate Google's competition with Apple Pay payments service. Softcard is a joint venture between Verizon, AT&T, and T-Mobile that was formerly known as ISIS.
Like Apply Pay, it relies on Near-Field Communications (NFC) to letpeople make payments with their phones — or other devices — without having to swipe a credit card.

When Google Wallet was first launched, Verizon blocked it from accessing the secure chip it placed in phones, which was a necessary step to ensure safe transactions. Softcard which it supported, has fallen flat on its face. 

Thus far, the overall consumer response to Softcard’s app has been poor and the company is currently headed for a merger or an acquisition. Google is offering less than $100 million for the carrier-backed mobile payments company, according to TechCrunch. 

But why would Google buy Softcard? The search giant has a few good reasons. Google could take advantage of Softcard’s patent portfolio, as TechCrunch notes. Softcard has something like 120 of them in total. And by combining resources, Google could improve the user experience of Google Wallet, making it more competitive with Apple Pay.

Acquiring and shutting down Softcard would greatly simplify the mobile payments game. With Softcard out of the way, Google could pitch Google Wallet as the Android counterpart to Apple Pay, while reaping all the benefits of carrier support.

Google would finally get the OK to preinstall the app on Android devices. One thing is for certain, the mobile payments market is wide open. Now is the time to put forward a refined product. Can Google do this? It didn’t the first time around. Maybe a Softcard deal would afford Google a second chance to make this happen.