Google recently announced that it plans on collaborating with Softcard, a mobile payment carrier for three major wireless providers (AT&T, T-Mobile and Verizon Wireless), for its new mobile payment platform, called Google Wallet. After this deal, the US carriers will load the Google Wallet app onto Android devices running KitKat and Google will acquire Softcard’s Technology.
“It’s good for Google and good for the market as an industry,” has declared Bob Delisa, president of Windsor, Conn.-based Google partner Cooperative Systems. “There were roadblocks for Google Wallet before with the carriers and this move helps that. It also opens up competition for the mobile payment space, and I’m a firm believer in competition,” she continued.
Like Apple Pay, Google Wallet will come with a technology known as near-field communications (NFC), which allows the phone to interact with the point-of-sale terminal. To be mentioned that just last week, another huge company has announced its own acquisition of LoopPay, to help its users to make purchases with a smartphone. Yes, we are talking about Samsung. So, we have three huge companies that made the next step into the world of fast payments.
After Apple Pay, competitors is working fast and hard to build new alternatives or buy existing ones to create a more viable and better product. However, Apple is also a newcomer when it comes to mobile payments. The company has introduced Apple Pay in the fall with the iPhone 6 Plus and iPhone 6. On the other side, Google and Softcard, also known as Isis in the past, have worked together for years to understand mobile payments. Unfortunately, both ran into roadblocks, Google had only one carrier partner, Sprint, because not all of its smartphone parents were interested to put NFC into their devices. Even if Softcard had the backing of the three major carries, retailers were slow to upgrade to NFC-enabled terminals. Even Apple deals with this problem today.
“For now, Softcard customers can continue to tap and pay with the app,” Softcard had claimed. It also said that it would be more information in the coming weeks.