Dive Brief:
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Google Inc. is in the midst of discussions regarding the acquisition of mobile wallet company Softcard, according to news reports. Neither company would comment on the reports.
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Softcard, formerly known as Isis Wallet, was a creation of a group of mobile phone companies — AT&T, Verizon and T-Mobile — that struggled to take off and was once accused of blocking Google’s mobile wallet. The company recently announced layoffs.
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The deal could be a bargain-hunting situation for Google, which may have the opportunity to acquire Softcare for less than $100 million, sources told TechCrunch.
Dive Insight:
Mobile payments have arrived, but it’s a bit like the Wild West out there. It looks like entities like Softcard and CurrentC, which were slow to ramp up and were designed in part to benefit their creators, are in danger of missing the boat.
While Apple Pay is the system that managed to grab everyone’s attention and is quickly becoming popular, the competition isn’t going to lay low. PayPal will soon be able to take advantage of its freedom from eBay, and while there’s no confirmation on this report, but it makes sense for Google to gain some of Softcard’s assets as it attempts to reassert itself in payments. Look for more consolidation and other efforts to gain dominance in this area.