Google (NASDAQ:GOOG) Needs To Come Up With A Plan In Order To Compete Against Apple Pay

Google (NASDAQ:GOOG) did not use its huge user base to generate capital via mobile payments. One of the reasons for this failure has been the numerous ventures of wireless companies to offer their own mobile transaction services. One such company is Softcard. Google (NASDAQ:GOOG) is planning on buying this company for a total of $100 million. However, it must be kept in mind that Google will have to do more than just acquire the little venture in order to compete with Apple Pay.

What makes Apple (NASDAQ:AAPL) successful is the huge partnership base and its latest technology. If Google (NASDAQ:GOOG) wants to compete with Apple (NASDAQ:AAPL) then the company will have to strengthen its ties with phone manufacturers and banks first. One advantage that Google (NASDAQ:GOOG) will get from the acquisition of Softcard will be its improved connections with wireless carriers.

It is important to mention here that the company already has some agreements with the internet companies over profit sharing from the Google (NASDAQ:GOOG) Play Store and mobile search income. If the company extends its profit sharing contract to the Softcard connections, its relations with carriers will definitely build up. The carriers will be encouraged to promote Google (NASDAQ:GOOG) Wallet and Android phones. Moreover, the company will have an access to the NFC chip;

This access was previously blocked by Softcard; one of the reasons why Apple (NASDAQ:AAPL) beat softcard was the former’s latest technology. Apple (NASDAQ:AAPL) is not only a hardware manufacturer but the company also deals with software; the company can offer services that work flawlessly. Moreover, Apple (NASDAQ:AAPL) has around 40 percent of the total market share of smartphones in United States.

Such a huge market share meant that the carriers would have to let go of a huge portion of their sales, had they tried to block the sales of Apple (NASDAQ:AAPL) Pay. Google (NASDAQ:GOOG), on the other hand, will have to have good relations with smartphone OEMS in order to make the experience with Google (NASDAQ:GOOG) Wallet worthwhile. One way to do this will be the repeal of restrictions from the wireless companies.

Softcard has some partnerships with Wells Fargo and American Express. However, Google (NASDAQ:GOOG) will have to do more in order to eradicate the concerns of credit card companies and banks. The financial institutions declined to come on board with the company’s mobile payments system due to the privacy concerns that the tech giant just wants to record people’s buying history. But then again, the company wants to gather the purchasing data in order to make more money via mobile transactions.

Once it has the data, it can translate it into the digital business. Coming to the stock price of Google (NASDAQ:GGOG), the company is currently trading in the range of $533 to $542.17. On January 23, 2015, the company opened its stocks at a price of $535.59 and closed at a price of $539.95. The company has a total market capitalization of $366.96 billion.