Google Softcard Mobile Payment Deal Targets Apple Pay

MOUNTAIN VIEW, CA -- Google Inc. has officially made a deal with mobile payments provider Softcard and subsequently announced a collaboration with three of the U.S.'s largest wireless carriers. Softcard is jointly owned by those carriers, AT&T, T-Mobile US and Verizon Wireless, which invested hundreds of millions of dollars into its development. It was founded as Isis in 2013.

The pairing with the wireless carriers will help Google compete with Apple Pay and a new mobile payment initiative from Samsung, which just acquired LoopPay.

Google is acquiring technology and intellectual property from Softcard that could be used to enhance its Google Wallet app. Consumers can use the app, which is similar to Apple Pay, to tap their phones to pay for purchases in stores, and at vending machines. The Google Wallet app and tap-and-pay functionality will come preinstalled on Android phones running KitKat or higher from AT&T, T-Mobile and Verizon later this year, Google said.

Both Google Wallet and Apple Pay require NFC to operate, an effective protocol, but a pricy upgrade for merchants' terminals. Some newer vending machines are NFC-ready and many payment companies active in the industry support both brands. LoopPay, on the other hand, uses technology that doesn't require NFC to operate. Some industry watchers believe this could put Samsung ahead of Apple Pay and Google Wallet.