In recent months, T-Mobile (TMUS) has been betting big on its T-Life app to attract and retain customers, especially after many cut the cord on phone service since the phone carrier implemented price hikes over the past year.
The T-Life app launched in January last year and is advertised as a “simplified experience” that allows customers to manage their own accounts and services.
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In February, T-Mobile launched its new in-store system, Magenta Welcome. It reportedly requires store employees to encourage customers to download and use the app to conduct transactions, upgrade phones, and pick up devices from stores.
Related: T-Mobile launches a cheap new service amid customer struggles
T-Mobile has even been rolling out generous deals and perks through the app in a section called T-Mobile Tuesdays.
For example, on July 8, T-Mobile began offering customers a free DoorDash subscription (DashPass) through the app. A few days later, it rolled out a six-month free trial of Apple TV+, which is usually $9.99 a month.
T-Mobile will retire an app that launched in 2019.
Image source: Bloomberg/Getty Images
T-Mobile has bittersweet news for customers
As T-Mobile increasingly invests in its T-Life app, it plans to soon retire its yearslong T-Mobile Money app, a mobile banking service for customers.
The app launched in 2019, and T-Mobile advertises it as “a no-fee, interest-earning, mobile-first checking account that anyone can open and manage right from their smartphone,” according to a 2019 press release.
In a new update on its website, T-Mobile states that the app will “soon” disappear (the official date is unknown) but will have a “new home” in the T-Life app instead. Customers can also still access their accounts online.
The phone carrier states that moving T-Mobile Money to the T-Life app will make managing “banking, wireless, and more — easier than ever.”
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The change will cause some features to disappear or work differently. For example, customers will no longer be able to manage direct deposit within T-Mobile Money; instead, it will have to be set up directly through their employers.
Customers will also no longer be able to mail in checks for deposit. Instead, they will have to use the T-Life app to deposit checks by photo.
Personal check writing and ordering checks will also no longer be available. If customers need to send a physical check, they can use the “Pay Bills” feature in the T-Life app.
T-Mobile Money’s “Pay Friends” feature will also be temporarily disabled. Instead, the phone carrier urges customers to send money using external payment apps such as Zelle and Venmo.
To lessen the blow of the upcoming changes, T-Mobile Money is making adjustments to its annual percentage yield (APY) eligibility. Starting Dec. 1, earning 4% APY on the first $3,000 in a checking account will only require $200 in monthly direct deposits. Customers will no longer be required to make 10 qualifying purchases.
Also, all T-Mobile Money customers who make $200 or more in payroll-based direct deposits every 31 days will be eligible to receive a loan of up to $50 if their accounts overdraft.
Not all T-Mobile customers are a fan of T-Life
T-Mobile’s move to push more customers onto its T-Life app comes after T-Mobile CEO Mike Sievert said during an earnings call on July 23 that the app is now one of the most downloaded apps in the App Store, with over 75 million installs.
“A year ago, very few of our phone upgrades occurred digitally,” said Sievert. “Today, we’ve checked that box. About two-thirds of our consumer upgrades now occur via our app.”
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Amid T-Life’s growth in popularity this year, it has recently encountered some criticism from customers.
In March, customers took to social media to claim that the app is far from simple to use, and that some customers are even walking out of stores due to frustration over using the app.
T-Life also faced criticism in May when a T-Mobile customer flagged in a Reddit post that it has a “screen recording tool” that is automatically turned on after the app downloads.
The tool records your screen when the app is in use and doesn’t record any activity outside of it. The feature can also be toggled on and off.
However, some T-Mobile customers claimed they are skeptical and uncomfortable with the feature, especially since it is automatically enabled. Some even said that the tool raises privacy concerns.
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