Dive Brief:
- Google Wallet announced that it has purchased the Softcard technology several mobile carriers were developed to facilitate tap-and-pay payments through Android smartphones.
- Under a new arrangement, Google Wallet will bring Softcard’s tap-and-pay capabilities and additional enhancements to more Android users.
- Google’s full payments app will come pre-installed on Android smartphones sold by AT&T, T-Mobile and Verizon Wireless beginning later this year.
Dive Insight:
Google Wallet has been slow to take off among Android smartphone users due to the fact that three leading cellular providers blocked it in favor of their own tap-to-pay mobile wallet system, Softcard. Now, Google has secured Softcard intellectual property along with an agreement that will guarantee that a Google Wallet is in millions of Android users’ pockets soon.
Within months, Android handsets sold by AT&T, T-Mobile, and Verizon running KitKat or higher will ship with Google Wallet pre-installed, allowing consumers to tap and pay for purchases via near-field communication (NFC) chip at thousands of stores nationwide. Google Wallet also helps users make online payments and track participation in loyalty programs. Apple Pay is noticeably missing the latter function, a oversight that was quickly criticized soon after its release.
The move seems likely to give Apple Pay—adopted quickly by millions of new iPhone 6 owners last fall—a run for the money, and may even represent the "tipping point" marketers have been expecting to spur widespread adoption of mobile wallets.
