It's no surprise by now, but another mobile wallet soon will be no more.
Softcard, whose technology Google recently acquired, officially told its users, if indeed any were left, that they no longer can use the digital wallet after the end of the month. They're advised to sign up for Google Wallet instead, an ironic end for a product whose backers--the mobile carriers Verizon, AT&T and T-Mobile--had started Softcard precisely to fend off Google Wallet.
Softcard has the news on its website, which bears the prophetically named URL gosoftcard.com:
Important news! We are pleased to let you know that Google has acquired technology from Softcard to power the next generation of mobile wallets.
What does this mean for you? As of 3/31 your Softcard app will no longer work. You can continue to use the Softcard app until 3/31. After that your Account will be closed.
To keep using a digital wallet app download Google Wallet now.
The move underscores the likely reality that Apple and Google are emerging as the two main players in the battle to control the way people pay using their smartphones. Apple Pay's debut last October almost immediately put the iPhone maker into the lead in ease of use and mindshare alike, and it has quickly consolidated its hold since then.
But with the Softcard deal, which includes pre-installation of Google Wallet on phones sold by the carriers, Google is emerging as the key alternative. That's not only because of the technology it has developed in the past few years, but simply because so many millions of people are using Android phones.
The game is not completely over. Large retailers such as Wal-Mart, Target, and CVS are backing an alternative called CurrentC. Samsung recently bought LoopPay, whose technology allows older magnetic-stripe cards that are still dominant in the U.S., to be used. eBay's PayPal unit, soon to be spun off, certainly isn't giving up, nor are a raft of startups. But they'll all be fighting an increasingly entrenched duopoly.
It's still going to take years for mobile payments to become a big force at least at retail stores. The vast majority of stores can’t accept Apple Pay because they don’t have terminals that use Near Field Communications radio technology used by Apple Pay. Stores face an October deadline to upgrade card terminals to accept chip-and-PIN cards or face the prospect of having to accept liability for fraud on card transactions. But while most of those terminals also will have NFC capability, payment experts believe it will be years before most terminals get upgraded.
Still, with Apple leading the way and Google hewing to similar technical standards, mobile payments are likely to start taking off this year.
It just won't be soon enough to save Tappy, Softcard's mascot:
