Rumor: Google to Acquire Softcard to Consolidate Mobile Payments

The year has just begun and we’re already seeing huge news or rather, rumors, on mergers and acquisitions in the mobile payments space.

If it can be believed, Google is in talks to acquire Softcard, an NFC-based mobile payment venture backed by some of the largest US telecom operators that has seen both highs and lows since its inception in 2010.

In a TechCrunch report, people familiar with the situation have said that Google may be paying below $100 million to acquire Softcard, and in effect, its current users.

If it’s to be believed, that means the company’s valuation is well below the amount of money that Verizon Network, T-Mobile, and AT&T, have put in, not to mention the Softcard promotions and cashback freebies from American Express and SUBWAY among others.

Softcard, or the mobile payment venture formerly known as Isis Wallet, boasted acceptance of 200,000 locations in the United States, and tests runs in Salt Lake City, Utah, that saw increased spending and loyalty from consumers.

Softcard, or rather, through the power of their telecom backers, had shut out their main competitor, Google Wallet by blocking the app’s access to the device’s host card, which coincidentally brought forth host card emulation to sidestep this block anyway.

While Softcard can be found on Android and Windows devices, the company found itself all but barred from Apple devices thanks to Apple Pay’s exclusive use of the new iPhone 6s NFC chips.

Rumors swirled around Apple producing its own payment platform, but few could have predicted consumers and merchants (save for the MCX consortium) reacting so well to its introduction.

By acquiring Softcard and around 120 meaty patents that the company boasts, Google can thin its competition, absorb those sweet patents, and reestablish Google Wallet as the de facto payment platform on Android devices.