19 December 2014

End-to-end in prepaid

Mike Fromant - Contis Group Ltd

6Posts 12,408Views 4Comments

T-Mobile's 'Mobile Money' - where's the added value?

29 January 2014  |  1450 views  |  1

Last week, T-Mobile announced that it was 'taking on the US banking market' with a mobile app and a prepaid card. The story stated that the company was targeting this service at the 68 million Americans that do not have traditional banking accounts, many of whom rely on expensive alternatives like payday lenders. The account boasts no minimum balance requirement and no charge for activation, monthly maintenance, or for replacing lost or stolen cards.

Reading this story, I wonder if T-Mobile has missed a trick. It is widely accepted that consumers need more than just a new facility if they are to ‘go mobile’ with their financial behaviour and the provision of value added services (VAS) are commonly cited as the bonus that can trigger the change. Had T-Mobile taken the step to link their customers' accounts to a rewards or incentives programme that would generate cash back and receive discounts at popular stores, as some of the best e-money providers do, its offer to this demographic would be enhanced greatly.

Prepaid cards are nothing new and the global e-money industry has been working tirelessly over the years to support the unbanked by providing a sustainable alternative to the recent flood of sub-prime financial providers, such as pay-day lenders. Waiving the fees is a good move but in the absence of additional incentives, it will be interesting to see how many people adopt the solution. Having invested the time, energy and money to bring this product to market, one wonders why they didn't go the extra mile.

This is a project to keep an eye on. It will be interesting to see if T-Mobile publishes adoption figures in the months to come and also how it develops the solution in order to catch up with the most innovative and comprehensive prepaid providers in the market. 

 

TagsMobile & onlinePayments

Comments: (1)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 31 January, 2014, 16:21

There's this prevailing view that T-Mobile doesn't need to differentiate its core product offering and can wing its new mobile money product based entirely on its powerful GTM differentiatiors like "45M existing customers, 70K stores and big mktg $$." 

https://twitter.com/JimMarous/status/426777247073067008

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Mike

AmEx and the unbanked - look to the UK for best practice

13 March 2014  |  1267 views  |  0  |  Recommends 0 TagsPaymentsInnovation

T-Mobile's 'Mobile Money' - where's the added value?

29 January 2014  |  1450 views  |  1  |  Recommends 0 TagsMobile & onlinePayments

The Looming Crisis for UK Credit Unions

19 July 2013  |  2132 views  |  0  |  Recommends 0 TagsMobile & onlinePayments

Shoring Up a House of Cards

17 June 2013  |  1969 views  |  0  |  Recommends 0 TagsCardsRetail banking

Prepaid eAccounts: last and best resort for Universal Credit

19 March 2013  |  2246 views  |  0  |  Recommends 0 TagsCardsPayments

Mike's profile

job title Managing Director
location Skipton
member since 2013
Summary profile See full profile »
As Managing Director, Mike has operating responsibility for the strategic growth of international end-to-end prepaid and debit solutions provider, Contis Group.

Mike's expertise

What Mike reads
Mike writes about

Who is commenting on Mike's posts

Ketharaman Swaminathan