T-Mobile’s Next Plan: Mobile Money, the “Un-Banking” service

by Istvan Fekete on January 22, 2014

The T-Mobile revolution seems unstoppable: after announcing its successful uncarrier plans, the carrier has moved into another area – mobile banking.

T-Mobile’s latest program is called Mobile Money, and it aims to provide a low-cost solution to consumers who don’t have a bank account. Users will be able to deposit and access their money, and pay bills using their handset and a Visa-backed T-Mobile debit card.

The trend is obvious: As we have seen lately, several companies have started creating a digital wallet for their customers. The group of companies undertaking such initiatives includes Google and Visa. T-Mobile is part of Isis, a joint venture with AT&T and Verizon, an initiative that is following the money and also attempting to create a digital wallet.

With Mobile Money, T-Mobile hopes to provide an alternative to roughly 70 million or so US adults who pay hundreds or even thousands of dollars in fees year after year for the management of their own money.

As T-Mobile VP Android Sherrard pointed out in an interview, these people are “really getting hammered with egregious fees by the industry”.
Mobile Money aims to become the solution for saving money. Through a combination of a smartphone, a prepaid Visa debit card, T-Mobile, and its banking partner, Bancor, customers will be able to purchase and reload the card at more than 3,000 T-Mobile stores, and eventually at Safeway and other retail stores.

They can use it wherever Visa is accepted and can withdraw money without a fee using any of the 42,000 ATMs available across the country.

As the company has pointed out, it doesn’t expect to make money from the banking service, but it hopes that those enrolling in the program will become loyal T-Mobile wireless service subscribers.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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