In Pictures: The Google/Softcard Saga

February 26, 2015 11:01 PM

Google and Softcard have been fighting a long turf war to become the dominant mobile wallet for Android users. Softcard has finally conceded defeat, but Google still has much work ahead of it. (Images: Softcard, Bloomberg News)

A video screen displays a new payment service introduced by Google Inc. at an event in New York, U.S., on Thursday, May 26, 2011. Google Inc. unveiled a service to let consumers pay merchants and download coupons with a tap of their mobile phones, as the Internet search giant seeks to expand in the growing market for mobile advertising. Photographer: Guy Calaf/Bloomberg

Guy Calaf/Bloomberg

In the Beginning

The original Google Wallet was strictly for contactless payments from two sources: a linked Citi credit card and a virtual Google-branded prepaid card. It also worked only on Sprint phones. In the years that followed, Google made many changes to make its mobile wallet more accessible. (Image: Bloomberg News)

Going Online

Six months after its launch, Google Wallet absorbed its predecssor, an online payment system called Google Checkout. This move both eliminated the Checkout brand and brought the Checkout userbase to Google Wallet, simultaneously expanding Wallet's features and audience. (Image: Shutterstock)

Softcard Makes Its Move

In late 2012, Softcard then called Isis began longrunning tests in Salt Lake City and Austin, Texas. The Isis wallet, created by AT&T, Verizon Wireless and T-Mobile, had the benefit of being able to use the carriers' stores as enrollment centers.

Wallets at War

Google Wallet and Softcard/Isis quickly became rivals. Well ahead of Isis' formal launch, the carriers behind the venture blocked the NFC version of Google Wallet from functioning on their handsets, citing security concerns related to Google's use of the phone's secure element. (Image: Shutterstock)

The Google Inc. Mobile Wallet card for cardless payment sits on display at the Mobile World Congress in Barcelona, Spain, on Wednesday, Feb. 29, 2012. The Mobile World Congress, operated by the GSMA, expects 60,000 visitors and 1400 companies to attend the four-day technology industry event which runs Feb. 27 through March 1. Photographer: Chris Ratcliffe/Bloomberg

Chris Ratcliffe/Bloomberg

Google Adds More Banks

For the first year, Google Wallet's process for enlisting banks was so onerous that no company other than Citi participated. Then Google changed its process, removing the need to directly connect to a card account by passing most transactions through a virtual MasterCard. (Image: Bloomberg News)

The Google Inc. Mobile Wallet application for cardless payment is displayed on a smartphone screen at the Mobile World Congress in Barcelona, Spain, on Wednesday, Feb. 29, 2012. The Mobile World Congress, operated by the GSMA, expects 60,000 visitors and 1400 companies to attend the four-day technology industry event which runs Feb. 27 through March 1. Photographer: Chris Ratcliffe/Bloomberg

Chris Ratcliffe/Bloomberg

Google Prepaid Goes Away

With the new virtual MasterCard in place, Google was able to remove the virtual Google-branded card from the wallet app. The Google virtual card was once used by a security researcher to demonstrate a weakness in the app, so its removal eliminated a possible path for fraud. (Image: Bloomberg News)

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Softcard's Shaky Launch

Softcard/Isis launched nationwide in late 2013, though it was somewhat changed. Earlier partners Barclays and Capital One did not stay on for the formal launch, but soon thereafter Softcard brought in Wells Fargo as a participating issuer. Also, JPMorgan's virtual "Isis Cash card" was dumped in favor of American Express' Serve.

Google's New Guts

With the 2013 arrival of Android 4.4, also called KitKat, Google enabled Host Card Emulation, a technology that sidestepped the need for access to a phone's secure element. In doing so, Google was finally able to support contactless payments on all Android devices, regardless of which carrier's network was used.

Google Goes Plastic

By the end of 2013, Google had overcome the barriers with issuers and carriers, but it still had to expand its wallet's acceptance at merchants. Many U.S. merchants don't accept contactless payments, so Google began offering a plastic payment card to Google Wallet devotees.

Softcard Stats

In early 2014, Softcard/Isis reported activating 20,000 mobile wallets per day. Amex also reported that the Isis app was a significant enrollment channel for its Serve accounts.

Michael Abbott, chief executive officer of Isis, speaks about mobile wallet technology during a keynote event at the Mobile World Congress in Barcelona, Spain, on Wednesday, Feb. 29, 2012. The Mobile World Congress, operated by the GSMA, expects 60,000 visitors and 1400 companies to attend the four-day technology industry event which runs Feb. 27 through March 1. Photographer: Denis Doyle/Bloomberg *** Local Caption ** Michael Abbott

Denis Doyle/Bloomberg

Identity Crisis

As 2014 progressed, Isis faced a marketing crisis: A violent militant group was using the same name. After surveying its users, the venture chose to change its product's name to Softcard. Though the new name was less toxic, it shed all of the branding the telcos had been building for years. (Image: Bloomberg News)

Tim Cook, chief executive officer of Apple Inc., unveils Apple Pay during a product announcement at Flint Center in Cupertino, California, U.S., on Tuesday, Sept. 9, 2014. Apple Inc. unveiled redesigned iPhones with bigger screens, overhauling its top-selling product in an event that gives the clearest sign yet of the company's product direction under Cook. Photographer: David Paul Morris/Bloomberg *** Local Caption *** Tim Cook

David Paul Morris/Bloomberg

The Apple Effect

Some retailers committed to the upcoming CurrentC wallet responded to the 2014 launch of Apple Pay by turning off NFC acceptance altogether. Though this was meant as a blow to Apple, the move also blocked acceptance of Google Wallet and Softcard. (Image: Bloomberg News)

Wolfe, Daniel

Softcard's Hail Mary

After suggesting it could work with Apple and failing to deliver on this prediction Softcard began a new branding campaign featuring a puppet designed to look like a point of sale terminal. Unfortunately, "Tappy" wasn't popular enough to win over consumers and issuers.

Beginning of the End

In February of 2015, Google purchased technology and intellectual property from Softcard. The Softcard carriers also agreed to pre-load Google Wallet on the phones they sell. This followed some hard times at Softcard, including layoffs and the shutdown of some office locations. Days later, Softcard told the world it was shutting down. (Image: Shutterstock)

A jogger passes Google Inc. sign at the headquarters in Mountain View, California, U.S., on Wednesday, Oct. 13, 2010. Google, owner of the world's most popular search engine, said third-quarter profit increased as businesses spent more on advertising for online consumers. Photographer: Tony Avelar/Bloomberg

Tony Avelar/Bloomberg

Google's Next Move

Google will reportedly launch its Android Pay platform in May, enabling Android developers to handle e-commerce and in-app transactions. Though this is independent of Google Wallet, the two systems are expected to interact. Google should also expect fresh competition from Samsung and, separately, the merchants designing the CurrentC wallet. (Image: Bloomberg News)