Google (Photo : Reuters)
Several sources reported that Google is making moves in order to acquire Softcard, a company whose main service is mobile payment. Google, which made its name in search-engine and the Android OS has yet to comment on this issue but it looks like the company is gearing up in creating a service similar to Apple's Apple Pay.
Softcard was a joint venture of three companies with its roots in the mobile service industry; these are AT&T, Verizon and T-Mobile. The company was established in 2010 and was initially named Isis. Although Softcard has faced some major setbacks lately, some people involved in the negotiation shared that Google is willing to pay as much as $100 million in order to acquire the company as reported by Techcrunch.
A spokesperson from Softcard did not issue a comment about the rumored acquisition instead gave some insight about the company's recent mass employee lay-off saying, "Sotfcard is taking steps to reduce costs and strengthen its business. It includes simplifying the company's organizational structure and consolidating all operations into its Dallas and New York offices."
A report from CNBC reinforced many speculations that Google's plan to acquire Softcard is to challenge the recently released Apple Pay mobile payment scheme and digital wallet service by Google's rival Apple.
Another speculated possibility is that Google might only be interested in Softcard's patents rather than the company's mobile payment service. Right now, Softcard holds more than 120 exclusive patents.
Tech analysts were quick to point out that if Google wants to jump in the mobile payment and digital wallet service it has to do it now since several emerging companies are already setting up their own services, most notable of this is Stripe and the Amsterdam-based company Adyen.
