Target Adds Payment Functionality To Mobile App

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Following the lead of Walmart, Kohl’s, CVS and Starbucks, Target has incorporated a payment option into its mobile app. Customers can tie the new Wallet feature, introduced on Dec. 4, to their private label Target REDcard account. Wallet also ties in digital coupons and weekly ad offers along with the REDcard 5% discount.

The Wallet feature uses a 2D barcode, similar to the technology used by Starbucks, to speed payment at the store’s POS. The retailer plans to enable customers to store and redeem Target GiftCards with Wallet in the near future.

Keeping the Wallet’s funding options within the “four walls” of the retailer allows Target to avoid paying interchange fees to the traditional card networks, according to Mobile Payments Today. However, it also limits customer choice, in contrast to the Walmart Pay app, which can be linked to any credit or debit card, or a prepaid account for Walmart gift cards.


“With mobile shopping playing a key role in consumers’ holiday shopping plans this year, Target recognizes the vitality of streamlined payment options that position certain mobile buying options above others, one key aspect being effortless payment,” said Casey Gannon, VP of Marketing at Shopgate in commentary supplied to Retail TouchPoints. “Retailers who seek to go head to head with their competitors must implement their own mobile payment solutions, leveraging options like Apple Pay, Amazon Pay and Venmo. Apps with digital wallet capabilities are inherently more appealing to busy consumers.”



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