T-Mobile the Bank? Carrier Launches Mobile Money, a Debit-Like Prepaid Service

Continuing its streak of disruption, T-Mobile has announced that it is offering a new service dubbed Mobile Money

Mobile Money is similar to a personal checking account that’s powered by a T-Mobile branded prepaid Visa. T-Mobile subscribers can use this service without any fees to speak of, and include withdrawing, and depositing funds free of charge at select locations. Customers can deposit checks by taking a snapshot of it with their phone, and withdraw cash from in-network ATMs at no charge.

While this initiative may be completely out of the blue, this is potentially huge for the unbanked or the underbanked, who must rely on check-cashing services that skim a portion of their pay. “The typical household using a check casher to cash their paychecks could save about $1,500 per year, according to Mike Sievert, chief marketing officer at T-Mobile.

It’ll also allow them to go cashless, a much safer alternative than keeping large amounts of cash.

Non-T-Mobile subscribers do have to pay fees, but that may make things more enticing for non-subscribers. By offering this service, T-Mobile may be able to convince non-subscribers to switch carriers based on savings from check cashing alone.

Add to this the fact that users need to step into physical T-Mobile stores in order to deposit cash, and T-Mobile can expect to see an uptick in foot traffic… which means more potential customers getting their eyeballs on the carrier’s phones and services.