T-Mobile Enters the Merchant Services Fray With a Branded Reader And TSYS Processing

Merchants will be able to choose merchant services from T-Mobile US Inc. now that the wireless carrier has launched GoPoint, a new product that includes one-price processing and mobile card readers.

With processing provided by Total System Services Inc. (TSYS), GoPoint is aimed at small and medium-size businesses. The service charges a 2.75% fee but promises same-day funding. To use the service, businesses must have a compatible smart phone or tablet with T-Mobile service and a GoPoint card reader.

T-Mobile explicitly says it is targeting Square Inc. and Clover, a point-of-sale service from First Data Corp. Of the three, GoPoint’s per-transaction fee of 2.75% is the highest, but it charges nothing extra for same-day funding, while Square has a 1% fee for that and Clover does not offer the feature. Square’s software-licensing fees may range from $0 to $60 per month and Clover’s from $14 to $29 per month, while GoPoint has none. GoPoint also will provide 24-hour customer service.

Each GoPoint merchant account supports up to 99 employees. T-Mobile says they can be given different access rights to the transaction data.

“Together, we are solving critical issues that small and medium size merchants face, while bringing simplified payment solutions to businesses that not only manages day to day tasks, but also helps them grow their business,” said Philip McHugh, senior executive vice president and president of TSYS Merchant Solutions, in a statement.

GoPoint offers two Ingenico Group mobile card readers, both of which connect via Bluetooth to a tablet or smart phone and offer magnetic-stripe and contact EMV acceptance. The GoPoint Card Reader with Display—an Ingenico Moby 8500 device—also accepts contactless payments and has a color display. The GoPoint Reader costs $25, and the display version is $180 plus a one-time $60 cradle accessory.

In addition to the card reader, merchants will need a T-Mobile-compatible smart phone or tablet. Currently, merchants complete a form with their contact information. A T-Mobile employee then calls to continue the application process.

T-Mobile also announced a Business Marketplace, which offers various software programs, such as Microsoft Office 365 and DocuSign Business Pro, to merchants.