Rumor has it that the Google Inc. is reportedly buying the Softcard, a company involved in mobile payments. Reports suggest that the acquisition is probably to defend against the Apple Pay. Softcard, which was previously known as ISIS, is an NFC-based system and is widely accepted across 200,000 stores in the US alone.
Google was presumably the first to introduce the concept of the mobile wallet, the company, however, introduced Google Wallet for its Android users to process the payments with NFC-enabled smartphones. Soon, the rival company, Apple Inc, came along with the Apple Pay. Though that didn’t go far, and retailers started abandoning it soon after the launch. Google is apparently taking a step ahead by taking over a widely accepted payment method.
The acquisition right away will increase the number of users in the base, and soon will enable the Internet giant to expand it further. Probably, the Softcard is more reliable and convenient to both the users and the merchants.
According to the sources, Softcard is likely to lose its founder in a sub-$100 million deal. As per the reports, Softcard laid off nearly of 60 employees from the company and asked the remaining few to stop working. This could mean that the acquisition is just around the corner, and the Internet giant will have its employees working in it.
One could speculate the possible reasons for Google to acquire this company is that, first there are nearly 120 patents from Softcard that Google might be interested in. Second, the company wants to expand its reach to the users that are yet not associated with Google Wallet mobile payment service.
The move can presumably leave the already abandoned and less tamed Apple Pay. Cupertino giant still needs to mature it and gain the trust of the merchants for them to use the Pay.