- Target will bring payment capabilities to at least one of its mobile applications some time this year, Chief Information and Digital Officer Michael McNamara told Recode at last week's NRF Big Show 2017. A Target spokesperson confirmed the news to Retail Dive but declined to provide additional details.
- McNamara told Recode that offering a way for shoppers to pay and use a mobile coupon “would make sense,” a comment suggesting that payment features would be added to Target's popular Cartwheel app, which communicates with customers in store, offering exclusive discounts and integrating third-party coupons. He also said that, at least at first, mobile payment would be exclusive to customers signed up for Target's REDcard, a store-branded debit or credit card that gives users 5% off all purchases and free shipping on all online purchases.
- Target currently accepts Apple Pay and Android Pay online, but not in stores. It previously participated in the retailer consortium that backed development of CurrentC, a mobile payment application that failed to launch.
Mobile payment remains in a state of subdued growth as most consumers — whether troubled by security and privacy concerns, or simply loathe to change habits — have largely stuck with their top-of-wallet plastic credit cards.
That slow adoption comes despite significant benefits to consumers, including convenience, card-less and paperless payment options, and handy couponing, says Maya Mikhailov, CMO and co-founder of mobile solutions platform GPShopper. Moreover, retailers have compelling reasons to convince customers to pay with their apps.
“For retailers, it opens up a wealth of data that can be used to personalize the in-store experience using the mobile app as the focus,” Mikhailov told Retail Dive. “This one-stop-shop approach allows the retailer to tailor promotions and content to an in-store shopper in a more effective manner. There are no obvious downsides.”