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  • Google Reportedly Looking to Buy Mobile Payment Company Softcard

    A recent report claims that Google is looking to strengthen its mobile payment solution by potentially purchasing Softcard, which is an NFC-based system backed by several major US wireless telecoms. The folks over at TechCrunch claim that Google has shown interest in buying out Softcard at a discounted sub-$100 million price tag in what would be an intellectual property grab.

    According to the publication, a joint venture originally backed by AT&T, T-Mobile and Softcard was introduced to Android and Windows smartphone users for retail payments. The service offers support for American Express, Chase, Wells Fargo and other large financial institutions and is currently accepted at over 200,000 merchants across the US.

    Despite several capital infusions which have totaled “hundreds of millions of dollars,” Softcard has yet to catch on with consumers and continues to bleed cash. The company has had to let go of roughly 60 people from its workforce earlier this month as a result of the loss.

    Softcard CEO Michael Abbot previously mentioned that Apple Pay raised the interest in the general mobile payments sector, noting a marked increase in Softcard app downloads. Since the two contactless systems incorporate NFC, point of sale terminals capable of processing Apple Pay are also likely to support Softcard. Transactions also spiked after Apple Pay launched in October according to Abbot.

    It should be noted that although both Apple Pay and Softcard are based on the same wireless protocol, the services process transactions in very different ways. Apple Pay transactions tend to use a tokenization method that passes generated codes between iPhone and POS terminal, ensuring sensitive credit card information is left out of the process. On the other hand, Softcard stores credit card data on a user’s SIM card and transmits those numbers to a POS terminal for processing.

    Both Google and Softcard haven’t chimed in on the matter and declined to comment. We’ll have to wait and see what happens though going forward.

    Source: TechCrunch
    This article was originally published in forum thread: Google Reportedly Looking to Buy Mobile Payment Company Softcard started by Akshay Masand View original post
    Comments 1 Comment
    1. wolfer_r's Avatar
      wolfer_r -
      I will never pay using then an Android or Windows device with NFC tech after reading this!!! They send your credit info to the machine and Softcard and everything is being recorded? No way!!! I will always use Apple pay then!!! But never Android or Windows system tech payment!!

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