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T-Mobile Money 4.0%: What's in the Fine Print? | Online Bank Review - YouTube
Channel: Real Estate COMMAND
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in this video, i am going to talk about t-mobile聽
money and uncover the fine print of their 4聽%
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interest program
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earn 4 % interest that is the headline that i saw聽
when i received a marketing email on march 10聽聽
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2021. it definitely piqued my interest since that聽
first email I've seen the four percent interest聽聽
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feature covered several times in their follow-up聽
emails as well as on their t-mobile money website聽聽
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my first thought was how is this even possible聽
no bank or credit union is paying that much in聽聽
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interest my second question is what is the catch聽
my third question is what is in the fine print聽聽
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i wanted to find out more and i will reveal to聽
you what i learned about it i will also tell you聽聽
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if i ended up signing up with a t-mobile聽
money account myself first a disclaimer聽聽
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I'm not a lawyer I'm not a banker and I'm not聽
a financial planner what I'm going to present聽聽
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should not be considered to be legal professional聽
or financial advice of any kind if you need聽聽
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legal financial or professional advice you聽
should hire a knowledgeable professional聽聽
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to discuss your situation i am only providing聽
this as general information based on my personal聽聽
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research experiences and my opinions this is not a聽
sponsored video of any kind i have no connections聽聽
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to t-mobile or t-mobile money aside from the聽
fact that i have been a long-time t-mobile聽聽
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customer who ended up getting one of their聽
marketing emails and by virtue of that first聽聽
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marketing email i got sucked down a rabbit hole聽
in looking into this so let's get to it let's聽聽
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get the answers that you want so one important聽
question that i had is how is it that t-mobile聽聽
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a wireless communication company suddenly getting聽
into the banking business did they quietly buy up聽聽
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some banks or did they simply start up a bank聽
from scratch it turns out that it's neither one聽聽
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of those scenarios that i thought of based on my聽
research based on my digging into the t-mobile聽聽
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money website as well as doing online research聽
this is what i found out t-mobile answers聽聽
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my question through one of their answers the聽
answer says we have partnered with bank mobile聽聽
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a division of customers bank a leading digital聽
bank for all banking services including customer聽聽
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support a distinct banking customer service聽
team of t-mobile money specialists managed by聽聽
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our partner will handle all t-mobile money account聽
inquiries except for user id and password-related聽聽
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inquiries which can be handled by t-mobile care聽
t-mobile money accounts are held at bank mobile聽聽
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a division of customers bank member fdic these are聽
a very important statements that they made because聽聽
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it gave me a trail to follow essentially t-mobile聽
appears to be a banking brand the true underlying聽聽
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bank that is underwriting this operation is聽
customers bank which has several brick and mortar聽聽
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branches in pennsylvania in the FAQ section of the聽
t-mobile website one of the answers provides this聽聽
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as an answer you will find us under customers bank聽
whose fdic certificate number is three four four聽聽
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four four t-mobile money accounts are held at bank聽
mobile a division of customers bank member fdic聽聽
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so that is the true entity behind the t-mobile聽
money operation now i did take it a step further聽聽
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i wanted to know more about bankmobile.com that聽
they referenced i went to the bank mobile website聽聽
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and saw on the web page footer that bank mobile聽
is a division of customers bank so it's consistent聽聽
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with the information on the t-mobile money聽
website i then visited the fdic website to look up聽聽
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customers bank I'm happy to report that the fdic聽
did list customers bank as a member of the fdic聽聽
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with a certificate that matched the number that聽
t-mobile money website provided and when you click聽聽
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further into the bank information of the fdic聽
entry for customers bank you will find multiple聽聽
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brick and mortar locations throughout Pennsylvania聽
i also jumped over to the customer's bank website聽聽
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to take a peek at it by everything I've seen聽
customers bank appears to be the real deal聽聽
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now i want to be careful as i make this video I'm聽
in Georgia so i don't have any direct access to聽聽
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any branch in Pennsylvania nor do i know anybody聽
in Pennsylvania and I'm not giving an official聽聽
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endorsement of customers bank or t-mobile money聽
all I'm saying is that everything seems to check聽聽
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out based on my online research now there's聽
something important that you need to know聽聽
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there are many t-mobile stores throughout the聽
us that cater to retail customers that come in聽聽
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to buy phones and sign up for cell phone plans聽
those t-mobile stores didn't suddenly become聽聽
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banking branches of t-mobile money the FAQ section聽
of t-mobile money website makes clear of this they聽聽
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don't want anybody to be confused and walk into a聽
t-mobile store expecting that there's going to be聽聽
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banking personnel to take care of their money and聽
financial situation so when we talk about t-mobile聽聽
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money we need to think about them as an online聽
bank only now the whole idea of t-mobile money聽聽
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and it being a digital operation means that you聽
have an app on your phone if you have the t-mobile聽聽
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app on your phone you should be able to conduct聽
most transactions that you will need to do and聽聽
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if you sign up for t-mobile money you will also be聽
provided a debit card which will allow you access聽聽
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to a network of atm's throughout the us now let's聽
get to the four percent interest that t-mobile聽聽
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money is claiming to pay how is it that t-mobile聽
money can pay four percent interest when no other聽聽
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bank or credit union I've ever heard has come聽
anywhere near close to paying that amount again聽聽
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we're going to look at the fine print the fine聽
print can be found on the bottom of the home page聽聽
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of the t-mobile money website and this is what it聽
says as a t-mobile money customer you earn four聽聽
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percent annual percentage yield on balances聽
up to and including three thousand dollars聽聽
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in your checking account per month so that's an聽
important point you're only getting four percent聽聽
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interest on the first three thousand dollars聽
on this particular fine print it also lists聽聽
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you have to be enrolled in a qualifying t-mobile聽
post paid wireless plan number two you have to聽聽
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be registered for perks with your t-mobile id and聽
number three which is an important point at least聽聽
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10 qualifying purchases using your t-mobile money聽
card have posted to your checking account before聽聽
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the last business day of the month not the last聽
calendar day of the month the last business day of聽聽
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the month qualifying purchases posting on or after聽
the last business day of the month count toward聽聽
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the next month's qualifying purchases it goes聽
on to say if you meet this purchase requirement聽聽
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in a given month we will pay you this benefit in聽
the subsequent month as an added value provided聽聽
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all other requirements are met in order to聽
incentivize people on this four percent interest聽聽
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as you transfer money into the account they will聽
pay you four percent interest for that month in聽聽
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which you're ramping up if you go further down the聽
fine print you will also see that any monies in聽聽
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excess of three thousand dollars you will be paid聽
one percent interest they do go on to say that if聽聽
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you don't make your ten qualifying transactions聽
per month at the very least you're going to get聽聽
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your one percent interest for the money that you聽
have in your account so as a quick review the four聽聽
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percent interest that's being touted so loudly聽
is being capped out at the first three thousand聽聽
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dollars anything in excess of three thousand聽
dollars you're getting one percent interest聽聽
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and if you're comparing the t-mobile account聽
versus most other credit union or bank accounts聽聽
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you're gonna find that one percent is still higher聽
than most of what you will see anywhere else聽聽
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but unfortunately i do have a gripe it turns out聽
that some of the verbiage that they have listed in聽聽
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the fine print at the bottom of the home page聽
is marketing speak unfortunately some of this聽聽
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marketing speak spills over to one of the answers聽
in the FAQ page they make mention that you have聽聽
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to be a t-mobile post-paid plan customer as well聽
as having sign up for their t-mobile perks as a聽聽
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requirement this is not accurate the reason it's聽
not accurate is that if you go further into the聽聽
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FAQ sections you will find two places which list聽
the true requirements and acknowledge whether or聽聽
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not you actually have to be a t-mobile customer in聽
this slide it says you don't need a wireless plan聽聽
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with t-mobile or sprint to sign up for a t-mobile聽
money account you only need to meet the following聽聽
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requirements to sign up for an account you must聽
be of legal age have a us government issued id聽聽
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or state issue driver's license have a social聽
security number have a street address within the聽聽
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us and Puerto Rico these requirements are largely聽
the same as any bank or credit union I've ever run聽聽
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into they encourage you to download and install聽
the t-mobile money app but it's not required聽聽
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you can do this through your computer like i did聽
through their website here goes another slide can聽聽
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anyone sign up for a t-mobile money account the聽
answer is practically identical to the previous聽聽
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slide as long as you meet the requirements you聽
can sign up for a t-mobile money account to sign聽聽
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up for an account you must be of legal age have a聽
u.s government issued id or state issue driver's聽聽
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license id have a social security number and have聽
a street address within the us and Puerto rico聽聽
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so same answer twice which clearly refutes the聽
earlier marketing speak where you have to be聽聽
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a pre-existing t-mobile post paid customer聽
and having signed up for their perks now as a聽聽
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follower of businesses I'm always curious how does聽
a company make money or benefit from what they do聽聽
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how is t-mobile making money off of this banking聽
venture first there's the obvious branding benefit聽聽
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at the moment t-mobile seems to be the only聽
wireless communication company that has聽聽
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an affiliated banking operation t-mobile is聽
creating some great pr by bragging about its 4聽聽
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interest program it gets people's attention聽
it certainly got my attention it got my聽聽
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fiancee's attention and if you're not a t-mobile聽
customer let's say you're with a t or verizon聽聽
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i am absolutely sure t-mobile will be very tickled聽
that you're going to have a t-mobile debit card聽聽
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in your wallet every time you use that t-mobile聽
debit card you can't escape the fact it's a聽聽
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t-mobile card even if you're using a t or Verizon聽
i think it's quite clever but beyond the branding聽聽
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benefit t-mobile hopes to make money through聽
merchant account transactions whether you're aware聽聽
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of this or not every time you use your credit card聽
or a debit card to make a purchase the issue of聽聽
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the card earns a transaction fee it gets paid by聽
the merchant in where you're spending the money聽聽
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over the course of time they hope to make money聽
through a larger volume of transactions and聽聽
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that's why they're encouraging their 10 qualified聽
transactions per month through their debit card聽聽
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and for me and anyone else who happens to have聽
a cash back card you have to weigh the benefits聽聽
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of taking away 10 transactions from your cash聽
back card and running it through the t-mobile聽聽
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money debit card to get the four percent interest聽
one thing you should remember is that four percent聽聽
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interest means it's four percent per year not聽
four percent per month so when you divide four聽聽
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percent interest divided by 12 months it works聽
out to be a third of a percent each month however聽聽
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big picture i do think that t-mobile money will聽
still win in the end and the reason is that the聽聽
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interest savings rate is so horrible at credit聽
unions and banks one percent sounds very nice聽聽
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for people who have idle money simply sitting聽
in savings accounts and I'm sure there are聽聽
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some people by virtue of goodwill they will be聽
encouraged to run their 10 transactions per month聽聽
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in order to get their piece of the four percent聽
interest there are many people who don't have聽聽
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cash back cards and they will definitely聽
benefit by following the t-mobile money聽聽
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qualified transactions plan so i told you at the聽
beginning of the video that i would let you know聽聽
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whether or not i would sign up for the at mobile聽
money account is it worthwhile for me to sign up聽聽
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and the answer is i did sign up for a t-mobile聽
money account i was persuaded by the marketing聽聽
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speed but that in itself got my attention聽
ultimately I'm a big believer in cultivating聽聽
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multiple banking relationships and I've聽
generally had good experiences with digital聽聽
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and online banking there are some benefits that聽
I've experienced where it beats brick and mortar聽聽
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operations but that's a discussion for another聽
time quite simply i like having banking options聽聽
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i don't like being dependent on any one or two聽
banks for my overall banking service needs if a聽聽
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bank or credit union upsets me i can close out an聽
account and transfer my money elsewhere because i聽聽
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believe in having backup accounts so i have signed聽
up an account and I've transferred money into聽聽
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the account and I've earned my first set of four聽
percent for making deposits during the first month聽聽
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but where i go from here i haven't fully decided聽
but i am very much interested in seeing how聽聽
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t-mobile money unfolds in the weeks and months聽
to come thank you for watching this video if聽聽
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you enjoyed this video hit the like button and聽
subscribe to this channel while you're at it聽聽
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take a look at these videos that I've recommended聽
for you and I'll see you in my next video.
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