Softcard, the mobile payment service created by AT&T, T-Mobile & Verizon, restructures, lays off employees

Softcard, the mobile payment service created by AT&T, T-Mobile & Verizon, restructures, lays off employees
In an effort to “reduce costs and strengthen its business,” Softcard, the mobile payment service that was created by AT&T, T-Mobile, and Verizon, is laying off 60 employees.

While that does not sound like a lot of people, being laid off is not pleasant, and in this case, the job purge is affecting up to 30% of Softcard’s workforce.

Softcard, originally named ISIS, launched in November 2013. It entered a market that had long been inhabited by Google Wallet, but mobile payments, by and large had not taken off. Softcard was not helped by the fact that a major platform, Apple’s iOS, was not compatible with the service and would not be until an awkward (and expensive) case for the iPhone would be available the following year.

With the advent of the iPhone 6 and iPhone 6 Plus came the introduction of Apple Pay, the landscape got more complicated for Softcard. Then, the Merchant Card Exchange, headed by the likes of Walmart, pulled the rug out from under everyone and started blocking all NFC-based payment solutions while MCX worked on its own mobile payment app called CurrentC.

Softcard’s layoffs are a measure to consolidate operations and streamline all operations into its Dallas and New York City locations. Generally speaking, such steps are not taken when things are going well, even though Softcard’s CEO noted, “We faced an industry that’s been fragmented, confused and riddled with inaction. We can all now bet on NFC.”

source: re/code

FEATURED VIDEO

12 Comments

1. spin9

Posts: 310; Member since: May 31, 2014

2. theguy2345

Posts: 1216; Member since: Jun 24, 2014

Why can't the retailers and software makers settle on a standard that everyone will use without paying anyone anything. Kind of like how USB works. The only problem is, some companies (apple) do not like standard anything and will just make their own.

3. jackwong64

Posts: 60; Member since: Apr 23, 2014

This is not something new, but someone has to make it popular. Name the someone please.

6. theguy2345

Posts: 1216; Member since: Jun 24, 2014

A neutral party should decide and make it popular, just like the USB council. They deside, and everyone starts to use it. Just makes it easier for everyone. The only one that won't use it is Apple, because they are Apple and they are above everyone else.

11. bracketslash

Posts: 16; Member since: Jan 13, 2014

no such thing as "USB council". IEC, however, does exist. look into contacting them if you want such a standard in place.

7. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

In the real world, its not about being practical. Always, about money and control.

4. GenericFanboy

Posts: 50; Member since: Sep 05, 2014

This bloatware came with my phone. From what I understand it's just another PayPal wannabe that does not accept all cards but just a few select one. This service will most likely die out.

5. timezone

Posts: 87; Member since: Jun 16, 2013

They should blame themselves. With the windows phone it is only on at&t. Blows my mind that this was allowed now knowing tmobile and Verizon are partners. I can't speak to the state of softcard on Android but I bet it isn't much better. This is an example of other stupid past examples. Text messaging was considered to be something the American users did not want. At that time the mobile companies either did not support it or charged amounts that stifled acceptance. Once fixed we all jumped in . Same thing is happening here. We are told there may not be a good reason for us to move to payments on the phone. The idiot companies are executing a self-fulfilling prophesy. Do the right thing, give us the apps and we will use it.

8. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

No it's not. Softcard for WP also works on Verizon. Originally it was only the M8 but now that the 928 and 822 have Denim they work too.

9. Deaconclgi

Posts: 405; Member since: Nov 03, 2012

Well, my wife and I will keep using SoftCard until it is no longer available. Lived before it, we will live without it.

10. timezone

Posts: 87; Member since: Jun 16, 2013

Crispin_Gatieza or anyone, can you provide the link to the phone store? I still believe it was at one time exclusive to at&t. Ah, 928 and 822. I have the icon which Verizon refuses to update. Looks like we will be able to get windows phone 10 or whatever it will be called fairly soon. Then maybe us Icon users won't be out in the cold. Thanks Verizon!

12. StanleyG88

Posts: 240; Member since: Mar 15, 2012

CurrentC is a total NO GO for us. We will not connect ANY wireless payment plan directly to our bank accounts. PERIOD. Softcard seems the best because we can use the benefits and security of our credit card. Google Wallet's problem is that you must fund a wallet account and you lose the CC benefits and security. Apple Pay doesn't exist in the Android world. Looks like Softcard or nothing.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.