Web News : Google Inc Is In Talks To Purchase Mobile Payment Company SoftCard

Reports suggest that Google is interested in taking over mobile payment service, SoftCard, and a $100 million deal might be on the cards. 

SoftCard, previously known as ISIS, was forced to change its name after a militant group known as "Islamic State of Iraq and Syria” started making headlines for all the wrong reasons. Softcard is a joint venture between AT&T Inc., Verizon Communications Inc., and T-Mobile US Inc. The mobile wallet has Windows and Android smartphone compatibility, and allows users to make payments through various payment terminal.

Google Inc and SoftCard have refused to comment on a possible deal.
"We don't have a comment, background, deep background, off-the-record steer, nod, wink or any other verbal or nonverbal response to these sorts of rumors," said a Google spokesperson.

At present, SoftCard is accepted by more than 200,000 merchants in the US, including big names like Subway and McDonald's. The service is backed by American Express Company, Wells Fargo & Co, and several other financial institutions in the market.
Google currently has its own mobile payment system called Google Wallet, which was one of the first mobile payment option in the retail market. However, the Google Wallet has failed to gain much traction.

The wireless carrier owned SoftCard hasn’t fared better. Reports suggest that SoftCard axed 60 jobs last week, and at one point the company’s burn rate was approximately $15 million a month, or half a million dollars per day. Morale in the company is at an all time low.

“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,” said a SoftCard spokesperson
Apple Inc.'s Apple Pay - mobile payment service for iPhone users – has had better success, with reports suggesting that one million credit card users utilized this service within 72 hours of the service’s launch in October 2014. This surge has also benefited SoftCard, with a greater number utilizing the service. 
It looks like Google is also looking to capture a larger share of the mobile payment sector. The tech giant may also be eyeing SoftCard’s group of patents, which are a little over 120. With the acquisition, Google will be looking to expand its roots, and add new merchants to its mobile payment service.
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