Apple, Android, and Google have their own pay services, where people can make payments directly from their devices. Recently, Wal-Mart joined the bandwagon when they released Walmart Pay. Target is now joining the game, planning to release its own payment service Target Pay later on this year. Although, Target has not decided if the service will be a part of the Cartwheel Coupon App, the main Target app, or perhaps a feature of both apps, mobile payments are definitely coming to Target.
This means that customers can leave their credit card at home. If the feature is anything like Walmart Pay, Target customers will scan a QR code with their phone to initiate payment processing. Target Pay will only be available to REDcard customers. At least at first. This differs from retailers like Walmart and Kohl’s, who offered an option for mobile payments to all of their customers from the start. Target does say that it will allow customers to use and earn rewards as well as process payments. This is very similar to what their retail competitors are already doing.
The announcement comes after Target saw a drop in its in-store sales, and a rise in its online sales over the holiday season. Overall sales have been flat year after year, which was also hurt further by sales in electronics and entertainment, which have declined. However, online transactions have increased by 30%. It is hoped that by extending a mobile payment option, Target can increase its sales. Significant growth in both numbers could easily put Target at an all-time high.
While options like Apple Pay will continue to be allowed online, users will find that they cannot use those payment services in store. The only in store mobile payment service that Target will accept will be its own. However, users will be able to use Target Pay online. For Target, mobile payments could mean new opportunities, and it remains to be seen how their service will stack up against their competitors.