Google is Said to Purchase Apple Pay Competitor Softcard

[RaduTyrsina]

According to a fresh report coming from TechCrunch, it seems that Google has shown interest in buying mobile payments company Softcard, perhaps in order to counterattack the rapid growth of the new Apple Pay payment system.

The publication says the acquisition price may be under $100 million, according to its sources. Here are some more details from the original report:

That is either a huge bargain or a testament to Softcard’s difficulties as an enterprise: sources tell us that AT&T, Verizon and T-Mobile — the three carriers that started Isis in 2010 — have collectively invested hundreds of millions of dollars in the joint venture.

Softcard earlier this month laid off about 60 employees and has been in a consolidation phase. The company would not comment on the M&A rumors or how much has been invested in the operation but provided a comment about the layoffs.

A Softcard spokesperson said the following:

“Softcard is taking steps to reduce costs and strengthen its business. This includes simplifying the company’s organizational structure and consolidating all operations into its Dallas and New York offices, which involves layoffs across the company. We believe these efficiencies will best position Softcard in the marketplace while maintaining focus on serving our market.”

Google too made a comment with regards to this speculation:

"We don’t have a comment, background, deep background, off the record steer, nod, wink or any other verbal or non-verbal response to these sorts of rumors"

It seems that Google could be mainly interested in Softcard's rich patent portfolio that could help the company further improve Google Wallet. And for Google, it seems the right moment to do it, as Apple is expanding its own payment system at a rapid pace.

Source: TechCrunch