This site is part of the Global Exhibitions Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Informa

T-Mobile Gets 'Aggressive' With Mobile Money Service

January 24, 2014 - News
Comments

T-Mobile is continuing its efforts to disconcert rivals with its new Mobile Money plan.

No. 4 T-Mobile, which already has gotten rid of contracts and added early upgrade programs, now is tackling mobile banking for subscribers who don't have bank accounts. Mobile Money lets users pay bills over a mobile device and/or with a Visa-backed T-Mobile debit card. This strategy targets people who don't bank at all, not just subscribers who use mobile wallet apps.  

As Yankee Group analyst Rich Karpinski notes, T-Mobile isn't the first operator or provider to try this. Boost Mobile has done it, as has Wal-Mart, among others.

"But given its strong 'uncarrier' strategy, T-Mobile brings some solid advantages, along with a portion of its customer base (including MetroPCS prepaid customers), that are a perfect fit for an aggressive mobile money service," Karpinski said. "T-Mobile is also being aggressive in trying to check off as many customer complaints as possible. In this case, many typical fees have been eliminated – a big draw for customers whose credit profiles have typically forced them to pay steep fees for the 'privilege' of accessing mobile banking services."

Karpinski expects T-Mobile to make money from the partner side of things, as well as charge customers for some services. Most importantly, however, Mobile Money "has the potential to be a huge churn-reducer."

"With increasingly large numbers of customers in the U.S. no longer bound by mobile service contracts, operators must deliver valuable services that are also sticky," Karpinski said. "It may be becoming easier to switch phone providers, but leaving behind a slew of banking, credit and financial service arrangements may be a much trickier proposition."

T-Mobile introduced Mobile Money as Sprint is said to be readying to bid for Deutsche Telekom-owned T-Mobile.

Comments
comments powered by Disqus
Related News
News
Zebra says Azara combines the functionality of Zebra's enterprise-grade Wi-Fi with the
News
The contract allows Level 3 to bid on and deliver telecommunications solutions to support the GSA's
News
SecureAuth says Threat Service customers can detect and protect against attacks while ensuring
News
For solution providers with strict service level agreements (SLAs), Vision Solutions enables