The payments functionality, called “Wallet”, is available within the Target app. Apart from paying for purchases, the app also allows shoppers to use Cartwheel digital coupons and discounts.
Cartwheel savings in Target’s app offered a similar functionality – shoppers would add selected products to their Target account and then use the Cartwheel function to scan barcodes at the point-of-sale. In essence, the new app adds Target REDcard as a new payment option.
Target’s REDcard is available as both a debit card that links to customers’ bank accounts and a store credit card, and offers 5% back on purchases to encourage its use.
According to the retailer, the advantage for consumers is faster checkout – up to four times faster than “other payment types”. The retailer wins by pushing their card and thus saving on payments processing fees. Apart from this, Target also gains access to consumer data from payments made within the mobile app.
Target is one of the latest brick-and-mortar retailers to provide its own payments option. Walmart previously launched Walmart Pay; CVS has CVS Pay; and Kohl’s has Kohl’s Pay.
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