US discount store chain Target has become the latest retailer to embrace mobile payments with the introduction of a mobile wallet within its app
06 December, 2017, 00:00
Today we're introducing Wallet in the Target app, a smart new way for guests to pay and save at Target stores. Target, however, wants more customers to shop with Wallet and is already working out a way to get them to use the feature even if they don't own a REDcard.
According to Target, using the new Wallet feature proved to be up to four times faster than checking out with other payment methods.
After almost two years since the news broke of its plans to launch its own digital wallet, Target has finally launched Target Wallet, joining the myriad retailers that have gone with their own proprietary mobile payment solution. At check out, you simply open the Target app and scan the barcode in the Wallet section of the app. According to the company, the feature will also allow customers to keep Cartwheel offers, Weekly Ad coupons and payment options in the same app.
But, as with Walmart and other retailers that still shun third-party digital wallets, this strategy may need to adjust accordingly if and when Apple and Android Pay scale to a point where they are the defacto preference for consumers.
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Target, like Walmart, probably has a sufficiently broad and loyal customer base to make the provision of a standalone mobile payment platform viable. Then again, it helps that Wallet only supports the retailer's own REDcard for the time being - the retailer saves on processing fees by pushing its own card.
Forrester predicts that by 2019, mobile payments will account for just 1 percent of all payment transactions.
"These "scan a barcode" solutions lack the magic of NFC", said Julie Ask, mobile research analyst with Forrester. To use Wallet for in-store payment, you must be a Red Card holder - whether it be the debit or credit version - and download the Target app from the App Store.
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