Verizon, AT&T, T-Mobile US rumored to have pulled Softcard support
Mobile payment platform Softcard looks to be experiencing some operational challenges, as reports claim the m-payment consortium has laid off up to 30% of its staff.
According to Re/code, Softcard has let 60 employees go as part of a restructuring process that has impacted staff across the organization. The move will see the consortium consolidate operations in its Dallas and New York offices.
“Softcard is taking steps to reduce costs and strengthen its business,” the company said in a statement, according to Re/code. “This includes simplifying the company’s organizational structure and consolidating all operations into its Dallas and New York offices, which involves layoffs across the company.”
Some reports suggested the restructuring was due to funding cuts from initial founding members Verizon Wireless, AT&T and T-Mobile US.
Softcard, which was officially launched in late 2012, has had a rocky history. The company last September moved to change its initial name from Isis, not wanting to be linked to the terrorist group.
Softcard claimed last November that its near field communication-based platform was set to be available on more than 100 mobile devices by the end of 2014, with expectations of continued growth due to increased consumer demand. Softcard has announced partnerships with Subway restaurants, McDonald’s and Wells Fargo.
Despite Softcard’s troubles, the m-payment field continues to garner interest from various parties. Apple Pay services have brought m-payment opportunities to iOS-wielding consumers despite some grumbling from retailers, while Visa earlier this year announced the creation of its own m-payment solution.
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