MOUNTAIN VIEW, Calif. & NEW YORK -- Google has acquired Softcard, the mobile-wallet venture between three major phone carriers formerly called ISIS, to bring together technologies to advance mobile wallets and to challenge rival wallet Apple Pay.
"We're excited to announce that we're working with AT&T Mobility, T-Mobile USA and Verizon Wireless, as well as their mobile payments company Softcard, to help more Android users get the benefits of tap and pay," Google said in a blog post announcing the deal. "Under this relationship, the Google Wallet app, including the tap-and-pay functionality, will come pre-installed on Android phones (running KitKat or higher) sold by these carriers in the U.S. later this year. We're also acquiring some exciting technology and intellectual property from Softcard to make Google Wallet better."
The Softcard platform uses near-field communication (NFC) technology to allow consumers to pay, redeem coupons and present loyalty cards with a tap of their smartphones. To use the mobile wallet, consumers need an NFC-enabled smartphone and a SIM-based secure element, which together make the device ready for use.
New York City-based Softcard was founded in 2010 by AT&T Mobility, T-Mobile USA and Verizon Wireless and pioneered NFC-based mobile payments and commerce in the United States by offering merchants more options and consumers a safer, simpler way to shop, pay and save using mobile phones.
Nearly 20 million smartphones in the market currently feature NFC technology, with millions more being shipped each month by the three carriers, which currently support 35 types of mobile devices for the wallet.
Mountain View, Calif.-based Google first introduced Google Wallet's tap-and-pay feature in 2011. The app works on Android devices, on any carrier network, to tap and pay anywhere NFC is accepted.
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