• Thu. Dec 1st, 2022

Boost Mobile launches mobile banking services for the underbanked

ByCindy J. Daddario

Oct 27, 2022

Boost Mobile, the prepaid mobile service provider that built its brand by marketing to young city dwellers, now offers digital current account and debit card services through a product it dubbed OmniMoney.

The integrated finance provider Alvierewhich is a partner of the Community Federal Savings Bank in New York, feeds the OmniMoney offer. In its marketing, Boost emphasizes the mobile banking app it offers OmniMoney users, security features such as instant blocking and unblocking of debit cards, and the ability to send money. money in Mexico.

Boost Mobile joins Verizon and T-Mobile on the list of mobile service providers that now offer banking services. While Verizon designed its offering for children and families and T-Mobile is aiming for a wider segment of the population, Boost focuses on the underbanked.

“We seek to provide basic services to historically excluded communities — where 60 million Americans are underbanked,” Stephen Stokols, who runs Boost Mobile, said Thursday. announcement. “Not only do Boost Mobile customers have access to unlimited wireless services at low prices, they are now able to take control of their finances with new tools through the OmniMoney app.”

After Boost Mobile started in 2001, it adapted to young urban adults by partnering with hip-hop artists and action sports stars in its marketing materials. Since then he has went after a wider band of the population by targeting the broader market of people who buy prepaid wireless plans.

OmniMoney users won’t pay monthly maintenance fees, but they will pay fees to send money to Mexico ($3.50 per payment), withdraw money ($1.30 for withdrawals to network ATMs) and deposit cash and checks ($1-4, depending on circumstances) – all fees that other digital banks have largely eliminated.

Boost Mobile customers can eliminate fees for sending money to Mexico if they purchase a premium mobile service plan from Boost.

Emmett Higdon, director of digital banking for Javelin Strategy & Research, is skeptical. For one, depositing and withdrawing money to and from accounts is free with comparable digital banking offerings, including T-Mobile Money, which also offers free overdraft protection up to $50. OmniMoney does not offer overdraft protection.

“Functionally, there’s nothing new here, except perhaps the focus on remittances to Mexico, which may reflect a high concentration of Latino customers among the Boost customer population,” said Emmett Higdon, Director of Digital Banking at Javelin.

For its part, Boost maintains that it provides a vital service for people who feel financially stuck.

“Now more than ever, people are looking at their spending as inflation continues to be a serious issue,” Stokols said. “We invest in customers who use their phones to power their lives.”