Google's bid on Softcard could bring the mobile payment game to a whole new level
As with every technology ahead of its time, the ability to pay by credit card using only a smartphone, has been a tough sell, until Apple decided to do what it does best, and turn it into a product that consumers would love first, and then take the time to truly understand.
Even the largest mobile carriers in the US failed to accomplish what Apple has done. Yet, they did start with the right idea by creating the mobile payment system Softcard, a project that began in 2010, piloted in Salt Lake City in 2011 and for which a set of new apps were rolled out in 2014.
A sequence of unfortunate events plagued the project from the start, from a release way too early into a market that just wasn’t ready, to the unfortunate choice of its former name, Isis, which was changed to Softcard as the news spread about the homonymous Islamic terrorist organization.
Finally, things turned so bad for Softcard that it is now up for grabs at $100 million, a price that apparently not even Google is willing to pay. By the same token, an offer has been made and talks are underway.
There are a few very valid reasons why Softcard might just allow bargaining room, especially when Google is involved. A Google acquisition of Softcard will not only create the conditions for Android smartphone makers to develop better mobile payment integration to stay competitive with Apple; it will also strengthen the relationship between Google and the major mobile carriers.
With products like Google Fiber and Google Domains, the search giant has made its intentions of investing in communication technologies, very clear, with unconfirmed rumors of the company’s future plans of becoming a mobile carrier itself.
As Softcard stands today, the service supports both iOS and Android, through a set of apps, although it’s difficult to determine whether a potential acquisition of Softcard by Google might turn the product into a direct competitor of Apple Pay, especially if Google makes a push for hardware integration in a similar way as Apple did with its own mobile payment system.
PayPal is also placing a bid, among the most motivated buyers, although no immediate comment or statement has been made.