First Squared, then Intuit, and now T-Mobile? That’s right, T-Mobil is entering the mobile payment market with partner LevelUp. LevelUp and T-Mobile has partnered before, but this is a new kind of partnership (one that comes with a unique T-Mobile docking station). The new T-mobile LevelUp payment system is a bit different from the top-of-phone devices that Square and Intuit are offering.

Instead of providing retailers with a small device that attaches to the top of a smartphone, T-Mobile has created a device that is, and acts like, a smartphone. Confused? I’ll explain how this device looks and works in a minute. But first, you should know (if you happen to be a retailer, that is) that the new T-Mobile payment device offers retailers a much lower rate than credit card companies (more on that below).

The T-Mobile LevelUp Device

The new T-Mobile terminals look a lot like ethereal white docking stations. When a retailer buys one of these stations, T-Mobile will send along a basic Android phone. This phone acts like a scanner that’s attached to the docking station. Using the LevelUp app, smartphone users can then place a phone in the right spot (marked), showcase a personalized QR code, and scan that code in order to allow a merchant to deduct funds. The whole process promises to be painless and quick, and that’s exactly what T-Mobile wants merchants to realize.

Now, you might be wondering why you allow merchants to store any kind of credit card or personal banking info. Well, you don’t need to worry about that because the new T-Mobile scanning device doesn’t store anything. Instead, users simply follow the LevelUp app process in order to create payment information, and this is further backed by a secure, and original, QR code. In short, there’s no need to worry about storing anything at all. The entire setup is as secure as can be, so both merchants and consumers have something to be happy about.

Low Merchant Cost

In today’s world, there’s very little reason for a merchant not to offer clients a way to pay for an item via credit, or other, card. One of the biggest merchant complaints, however, is that credit card companies simply charge processing fees that are too high. Well, this isn’t the case with the new T-Mobile device. Thanks to T-Mobile’s good relationship with credit card company, T-Mobile is only charging merchants a $25 monthly terminal fee plus a 2% transaction fee – that’s a lot less than the current going fee that credit card companies charge.

Sure, merchants who only accept cash don’t have to pay any fees, but these retailers risk alienating certain customers in the process. As a consumer, I can honestly say that rushing to the bank to pull out cash is a real nuisance when a service or retail item is needed. If you’re a merchant and you don’t like the idea of the new T-Mobile terminal, look into Square or Intuit or any number of other similar companies that are bound to pop up over the next few months. Your clients want to go mobile, don’t hold them (or yourself) back.