Mobile payment technology maker Softcard is planning to cut 60 jobs in the US in an attempt to cut costs and restructure the company.
Backed by telecom giants like Verizon Wireless, AT&T and T-Mobile, the payment solution was previously known as Isis and created a technology which allows users to pay for purchases using phones instead of credit cards.
Softcard uses NFC based technology and also allows users to add loyalty, membership and rewards cards.
It is being speculated that Verizon Wireless, AT&T and T-Mobile have backed out of the project and have stopped funding it.
However, the app has been downloaded more than four million times, with the company also having made deals with Subway and Jamba Juice, reported Finextra.
The company in a statement said: "Softcard is taking steps to reduce costs and strengthen its business."
"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."
PayPal is also expected to introduce an app for smartphones which is backed by retailers including Walmart and Target.