T-Mobile has announced plans to shake-up the U.S. personal finance industry by transforming smart phones into mobile money managers.
The Washington-based company said its new offering, Mobile Money by T-Mobile, will free customers from excessive fees they often have to pay to use their own cash.
Mobile Money will provide customers with a reloadable T-Mobile Prepaid Visa card along with a mobile money management app.
T-Mobile described its new service as “a sensible and affordable alternative” for the roughly 68 million U.S. adults who do not have traditional accounts and have to rely on alternative financial services.
John Legere, T-Mobile President and Chief Executive Officer, said: “We’ve already transformed how Americans use and pay for phones, tablets and wireless service; why stop there?
“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.”
The company said, once a customer signs up to Mobile Money, they will not have to pay charges for everyday financial transactions. This includes charges for activation, monthly maintenance, in-network ATM withdrawals, or for replacing lost or stolen cards. There will also be no minimum balance requirement or overdraft fees.
“It’s ridiculous that families, especially those who can least afford it, have to pay so much for basic check cashing services that many of us take for granted,” said Mike Sievert, Chief Marketing Officer for T-Mobile.
“Mobile Money levels the playing field to put money back in consumers’ pockets for important things – like bills, groceries or vacations.”
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