Google reportedly interested in mobile payments company Softcard

PanARMENIAN.Net - Google is interested in buying Softcard, the mobile payments company, TechCrunch reported, citing people familiar with the situation.

The price may be under $100 million, according to the sources. That is either a huge bargain or a testament to Softcard’s difficulties as an enterprise: sources tell us that AT&T, Verizon and T-Mobile — the three carriers that started Softcard (at that time known as Isis) in 2010 — have collectively invested hundreds of millions of dollars in the joint venture.

Softcard earlier this month laid off about 60 employees and has been in a consolidation phase.

“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,” a spokesperson said. “We believe these efficiencies will best position Softcard in the marketplace while maintaining focus on serving our market.”

Softcard, created as a unified front for the big carriers to come to market with a “contactless” NFC mobile payments solution (also what Apple Pay uses), says that there are over 200,000 merchants in the U.S. (including some biggies like Subway and McDonalds) that can accept payments with its app, which is available for Android and Windows Phone devices but not Apple’s iPhone handsets.

Softcard app users can activate payment cards from American Express, Chase, Wells Fargo and other banks in the app to then use their phones to pay for things with those merchants.

A source, according to TechCrunch, said that at one point the company’s burn rate was around half a million dollars per day, or around $15 million per month.

Google’s interest in the company had been rumored elsewhere. The sources note that both PayPal and Microsoft have also approached the company.