Google in talks to buy the mobile-payments firm Softcard
Google Inc is in talks to acquire Softcard, the mobile-payments company, according to a report by TechCrunch that cited people familiar with the matter.
The transaction would allow Google to compete with Apple Inc’s new payment service called Apple Pay.
Softcard is jointly owned by AT&T, Verizon Wireless, and T-Mobile USA.
In the report a Softcard spokesperson said:
“Softcard is taking steps to reduce costs and strengthen its business. This includes simplifying the company’s organizational structure and consolidating all operations into its Dallas and New York offices, which involves layoffs across the company. We believe these efficiencies will best position Softcard in the marketplace while maintaining focus on serving our market.”
Organizational structure refers to how a business entity or any kind of organization structures its employee hierarchy. The structure helps the business achieve its aims and objectives.
Google entered exclusive negotiations to buy the business for at least $50 million, according to the Wall Street Journal.
Paypal has also expressed an interest in Softcard, the WSJ said. However, people familiar with the matter said that the owners of Softcard would be more inclined to go with Google as they all distribute phones that come equipped with Google’s Android mobile operating system.