T-Mobile enters mPOS market

T-Mobile is putting Square and First Data's Clover on notice With GoPoint, a new mobile Point of Sale (mPOS) device offering businesses free same-day funding and no software licensing fees.

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T-Mobile enters mPOS market

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

T-Mobile plans to win over businesses by eliminating surprise fees charged by rival suppliers, including security fees, audit fees, conversion fees, over-the-limit fees, and charges for same-day funding.

Instead, merchants that convert to GoPoint will pay 2.75% for debit and credit card transaction processing and are eligible for free funding on the same day. The telco says it will also provide up to 99 employees of the business with tools, reporting, and insights to manage sales transactions, track inventory, and get analytics.

"When we looked at the insidious practices and never-ending fees mobile point-of-sale providers charge small businesses we knew the Un-carrier needed to step in,” says Mike Katz, EVP of T-Mobile for Business. “Not surprisingly, paying fees on top of fees and waiting days for their hard-earned money is a big pain point, particularly for small businesses. That’s why the Un-carrier is doing payments differently - with free same-day funding, no software licensing fees and 24/7 live support from real people.”

To accept card payments, businesses require a compatible smartphone or tablet with T-Mobile ONE service and a GoPoint card reader, the latter developed in concert with Tsys.

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Comments: (2)

A Finextra member 

"When we looked at the insidious practices and never-ending fees mobile point-of-sale providers charge small businesses we knew the Un-carrier needed to step in,” says Mike Katz, EVP of T-Mobile for Business.

With interchange fees of 0.3% and 0.2% for consumer credit & debit, a fixed fee of 2.75% seems a bit of a hypocritical point to make. It's just the same insidious practice but under a different guise! That said, for high margin merchants this may be of interest.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

While the article is silent on this point, T-Mobile GoPoint website seems to suggest this offering is only for USA. AFAIK, credit interchange is not subject to any cap in USA and hovers around 2-3%. So 2.75% flat fees charged by GoPoint is not too bad. That said, 2.75% is too high for debit cards, on which, I think, max interchange is 22 cents / transaction post Frank-Dodd-Durbin Amendment.

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