Google announced in a press release today that they forged a deal with Softcard enabling the Google Wallet app to come pre-installed in many Android devices. Google will also be acquiring parts of Softcard technology and patents as part of the new agreement between the two companies.
The move gives Google momentum to better compete will Apple Pay, as the Wallet app will be pre-installed on millions of phones, making it the natural choice for Android users. Prior to this deal, Google struggled from not having any agreements with the communication giants who were in fact competing with Google on their own Softcard system. Under the new agreement with Verizon, T-Mobile and AT&T, the Wallet app will come pre-installed on all phones running Android version 4.4 and higher.
The new Google-Softcard service will roll out later this year.
Softcard users can still continue using the payment app, but the service is likely to peter out and shift over to Google Wallet dominance. The struggling Softcard will probably fade away completely over the years, as users begin using the readily available Wallet app.
Google isn’t reportedly buying the entire Softcard, but they are purchasing certain technologies and patents from them. This can also help them fend off any potential patent lawsuits that Apple Pay could bring.
The move comes as part of an increasingly competitive mobile payments market, with Samsung recently acquiring LoopPay, an alternative mobile payments system, and sets the stage for fierce competition between Apple, Google and Samsung as they compete for dominance in the mobile payments market.
So Google goes half-a$$ on this product too. They are starting to remind me of Microsoft, their fingers are in so many things that a few things they could really do well, they punt the ball and copy or play catch up to whoever is the lead. Maybe they aren’t hungry anymore.
With this new move, I could see them becoming a significant player. We’ll have to wait and see.