T-Mobile’s service links a pre-paid Visa card to an app on the phone. Cards can be used at ATMs, in shops and to pay bills, and the app can be used to keep track of transactions and balances. Millions of Americans don’t have traditional bank accounts and T-Mobile claim that this service may provide a cheaper alternative to cheque-cashing services and payday lenders. Pre-paid cards are growing in popularity in the US. Read more here.
In the UK, O2 recently announced that it was shutting down its mobile wallet service which similarly offered a pre-paid card linked to an app. More here. Customers have until 31st March to spend funds stored on their account.