LONDON: Google Inc. is reportedly interested in acquiring Softcard, a mobile payments service, for less than $100 million. Softcard is a joint venture among AT&T, Verizon and T-Mobile, that the search giant and Android developer hopes will boost its Wallet service amidst growing competition from Apple Pay.
According to a report from TechCrunch, “people familiar with the situation” say that Google’s price tag is substantially reduce than the money that Verizon, AT&T and T-Mobile have spent on building Softcard given that it was founded in 2010. The firm has laid off a quantity of employees as it reportedly is spending upwards of $15 million per month.
“Softcard is taking steps to cut down fees and strengthen its enterprise. This incorporates simplifying the company’s organizational structure and consolidating all operations into its Dallas and New York offices, which requires layoffs across the organization,” a spokesperson told TechCrunch.
Google routinely refuses to comment on speculation about acquisitions until they have been completed. Earlier reports have claimed that Google, along with Paypal and Microsoft have been interested in acquiring Softcard.
Mobile payments in Softcard are processed by way of close to-field communication, or NFC, the exact same kind of wireless technologies used by Apple Spend in the iPhone 5S and iPhone 6. Softcard claims it can be utilised at more than 200,000 merchants, which includes fast meals giants McDonalds and Subway. The Softcard app functions on Windows Phone and Android, producing payments from connected debit and credit cards supplied by American Express, Chase, Wells Fargo and others.
Google is interested in Softcard reportedly for its portfolio of more than 120 patents and patent applications connected to mobile payments, TechCrunch stated. One particular former employee stated that the layoffs had been negative timing for Softcard, as Apple Pay could ignite interest in mobile payments.
“It’s unfortunate that they’ve chosen now as a time to scale back,” says Ed Busby, former Softcard chief commerce officer, told TechCrunch. “Externally, for the first time because I’ve been in this industry, the signs are pointing positively for mobile payments.”
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