T-Mobile Mobile Money Pre-Paid Visa Service and App Announced

T-Mobile announced Mobile Money, a new pre-paid Visa service from the Uncarrier. In the press release, John Legere, President and CEO of T-Mobile, said, “Millions of Americans pay outrageous fees to check cashers, payday lenders, and other predatory businesses – just for the right to use their own money. Mobile Money shifts the balance of power for T-Mobile customers and keeps more money in their pockets.”

Mobile Money is not T-Mobile’s first foray into the personal finance arena as they already offer installment plans on devices. The service could be pretty useful for T-Mobile customers that don’t have a traditional checking account. At an average rate of 3% transaction in fees that can be avoided, Mike Sievert, chief marketing officer for T-Mobile said typical household could see $1,500 a year in savings using Mobile Money instead of using a check cashing service.

The accompanying Mobile Money app on their phone is used to scan and deposit checks, which funds the Visa pre-paid card balance. Once the card is funded, it can be used at any retailer that accepts Visa. There is also a network of 42,000 ATM’s you can withdraw cash for no fee.

The program is not just for T-Mobile customers, but there are pretty much no fees for those that are. There are some conditions to it, but overall this looks like a good alternative to other non-traditional financial services. Personalized prepaid cards are available to order online with additional cards available at T-Mobile retail locations and Safeway stores in February.

Source: T-Mobile
Via: The Verge