Previously known as Isis Mobile Wallet, Softcard is a shared company which brings together Verizon, T-Mobile and AT&T. This merger has launched back in 2010 and now it is courted by Google.
Why Softcard? Because it uses a system which is based on near-field communication. In other words, the system allows users to make payments by simply tapping their phones. Also, Softcard is a proud partner with Discover network and Barclaycard US.
Taking back a few years ago, Softcard was in an argument with Google. Ironically, Google had a previous attempt to launch a mobile payment system, but its access was restricted by Verizon. All Verizon phones had a chip placed inside them that locked any access to the secure chip. Safety actions were taken by Verizon to provide and assure safe transactions.
It has been speculated that Verizon was determined to slow down Google’s new mobile payment system names Google Wallet. However, Softcard was not seen a success in mobile payment systems and the company downsized quite a lot. Because of that, more than 60 people were let go.
A rumor had been circulating for quite some time that Softcard was heading towards an affiliation, a merger. The company strongly denied that rumor.
The company’s spokesperson explained that the company is planning on reducing costs. Also, Softcard is determined to change strategies and become a more powerful business. The structure of the company was reduced to only two operational places, in Dallas and New York. Simplifying the organizational and operational structure left 60 people unemployed. All these actions were taken so that Softcard would maintain a better position and keep focus on the market.
All in all, Google has planned a 100 million dollar offer for Softcard’s carrier mobile payment system. The company has an exclusive list of partners which could only benefit Google. Acquiring Softcard’s patents will make thinks much more easier for Google regarding mobile payments.
Even though Google Wallet was blocked down by the same company it is trying to buy now, Google is focused on developing a great business from it. It is not looking for revenge only for a good bargain. Google is desperately trying to defeat its greatest competitor, Apple Inc.
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