Google will acquire mobile wallet technology from Softcard

Google Wallet is coming to Verizon, AT&T and T-Mobile as a result of the deal

The tap-and-pay mobile payments market in the U.S. is getting a little less confusing.

On Monday, Google said it had reached a deal with three of the country's major cellular carriers to acquire "technology and capabilities" from Softcard, a competing mobile wallet app developed jointly by the carriers. But the deal appears to be less about technology and more about branding.

The biggest immediate change is that Verizon, AT&T and T-Mobile will begin preinstalling Google Wallet on new Android smartphones later this year -- something that had been blocked before in preference for the Softcard app.

At their heart, both apps are based on the same contactless payment technology as Apple Pay and a new generation of payment cards from banks and credit unions. They use NFC (near-field communication) to complete a transaction once a payment card or phone is brought within a few centimeters of a terminal.

Apple Pay brought the technology widespread recognition when it launched late last year, but Google Wallet has been around since 2011. However a lack of support from carriers, retailers, card issuers and Google itself had relegated the technology to the sidelines.

While Google Wallet and Apple Pay share a technology base, there are key differences in how they work. Perhaps the biggest is that in Google Wallet, all transactions are routed through Google before being charged to the customer's credit card.

That gives Google even greater insight into the lives of its users. In contrast, Apple doesn't see any details of purchases made on its system.

Getting the Google Wallet app in front of more consumers could help reduce confusion over the different brands -- an important consideration when the biggest Android phone maker is making moves of its own in mobile payments.

Last week, Samsung said it was acquiring LoopPay, a startup that allows people to make payments with their phones on almost any payments terminal.

The LoopPay system relies on magnetic induction to send data to the read-head on a magnetic card swipe reader. The technology isn't as sophisticated as Google Wallet or Apple Pay but it has the advantage of working on almost any retailer terminal -- something that is far from true for NFC systems.

LoopPay currently requires an add-on phone case, but Samsung's acquisition could mean the technology is embedded in future handsets. At CES this year, LoopPay said it is also working on its own NFC-based system.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesGoogleAndroidconsumer electronicsSoftcard

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?