Stakk Strikes Deal to Supply Embedded Finance Solution to T-Mobile’s New T-Life Super App

Stakk (ASX: SKK) has secured a three-year deal to deliver its embedded finance solution to T-Mobile USA’s new T-Life super app.

Under the terms of the master services agreement, T-Mobile will leverage Stakk’s product and specifically its mobile image capture, image authentication, optical character recognition, and document and data orchestration capabilities.

T-Mobile will embed the critical infrastructure in T-Life to power part of the T-Mobile Money solution, which it will then make available to the telco’s 132.8 million customers.

Optimal Market Fit

Chief executive officer Andy Taylor said the T-Mobile deal underscored the product’s optimal market fit of the embedded finance solution.

“Securing T-Mobile as a Tier One client is a testament to our executional capabilities in this space and demonstrates a diversification of our customer universe, extending beyond traditional financial institutions and fintechs,” he said.

Stakk will derive revenue from a monthly platform fee and usage-based transaction fees incurred each time a T-Mobile customer interacts with service functionality powered by the Stakk solution.

This revenue will commence immediately and scale in line with user adoption of T-Mobile Money.

Major US Telco Carrier

T-Mobile is one of the largest wireless telecommunications carriers in the US, with a focus on 5G network leadership and innovative mobile services.

The company has grown through aggressive expansions, including a US$26 billion merger with Sprint Corporation in 2020 that solidified its position as the region’s second-largest mobile operator behind Verizon.

T-Mobile’s T-Life super app consolidates various services into a single platform, serving as a one-stop shop for account management, home internet, and additional services such as the T-Mobile Money all-in-one banking solution.

The app is part of T-Mobile’s strategy to streamline operations and improve customer service by integrating multiple applications into a unified experience.

Robinhood Banking Agreement

Stakk secured a similar agreement earlier this month to power US-based Robinhood Markets’ new banking product.

The service – which Robinhood will make available free of charge to its gold subscription clients – will feature Stakk’s image capture, authentication, and transaction processing capabilities.

“We are proud to add Robinhood as another great client to an already impressive client list,” Mr Taylor said at the time.

“The confidence Robinhood has placed in us, at this stage of our journey into embedded finance, is a tremendous vote of confidence in what we do and how we deliver.”