Technology giant Google has just immersed itself in a negotiation talks that would hopefully net mobile payments company Softcard to pad further its growing acquisitions. Several companies have shown interest on the beleaguered Softcard.
The internet giant is keen on acquiring the small payments group that is possessed by a group of US telecommunication companies for a hefty price of $100-million according to an individual who is part of the ongoing deal.
According to industry analysts the sale of Softcard will stir the mobile payment services segment that also has Apple Pay. The development will compel Apple to reassess its current position.
According to a banker who is not part of the talks said that Apple Pay is gradually becoming popular and PayPal will work as a single entity later this year and this will prompt all major technology-based companies to juggle around with their mobile payments stratagems. The banker has also predicted that there will be many mergers and acquisitions that will transpire regarding with this development.
Aside from Google there are other companies who are keen on penetrating the lucrative and robust mobile payment segment since this market has been predicted to command a whopping $1.5tn in 2014 according to information whipped up by research group eMarketer.
Google and other would be competitors will have their hands full as Apple Pay service is slowly becoming a force to reckon with in the mobile payments segment. The payment service from Apple enables iPhone users to connect their devices with their credit or debit cards and buy goods online with few clicks. Convenient and fast, Apple Pay service is slowly becoming popular among retailers and consumers who are fond of buying on the web.
Google is not new to this market. Four years ago, Google had also rolled out its very own Wallet but had lost steam and eventually fizzled out as it failed to attract enough consumers and retailers on its fold.
Softcard is actually a joint initiative that has been put up by three of the top four wireless carriers in the United States (AT&T, Verizon and T-Mobile) to enable the mobile users get hooked into the mobile payments niche, but groped for form on making it acceptable on the part of the consumers and retailers.
While mobile wallets haven’t penetrated the mainstream just as yet it provides an attractive platform for retailers and users, since it allows faster business transactions and enable the retailers to offer secured shoppers loyalty programs or special promotions.
There are several start-ups that are pressuring Google to make quick moves in this niche.