Google is reportedly planning to buy mobile payments company Softcard in an attempt to build up its Google Wallet service.
People familiar with the matter told TechCrunch that the search giant is preparing less than $100 million for the acquisition. But it is not only Google that has eyes on Softcard because the sources said that both PayPal and Microsoft have already expressed their interest in buying the company.
Softcard, formerly known as Isis Mobile Wallet, is a joint venture between AT&T, T-Mobile and Verizon that allows users to pay by simply tapping their smartphones to a payment terminal. It accepts payments through Isis, Visa, Mastercard, Discover and American Express.
The sources added that Softcard has already laid off more than 60 employees and that the company is already looking for buyers. But they believe that it wasn't really the technology that Google wants to acquire, but rather the more than 120 patents that the company owns.
"People at Softcard have a limited view on what's going on," one source told TechCrunch. "The whole place has been in a complete depression for at least six to eight months, to the point where people weren't coming to work, and were being told in December to take it easy through the end of the year. In general, it's not a culture with a lot of transparency, so a lot of people are thinking the worst."
Payments experts warned Google that it will not be a good business decision to get itself involved with Softcard if it is aiming to boost its mobile payments system, according to Forbes. This observation makes sense because Wallet has been in the business for some time yet it failed to draw a fraction of consumers. Also, Apple Pay has set a high standard for mobile payments and it is uncertain how Softcard can compete.
Google refused to confirm the news.
"We don't have a comment, background, deep background, off the record steer, nod, wink or any other verbal or non-verbal response to these sorts of rumors," the company said in an emailed statement.
