Target has announced plans to launch a mobile payment service later this year. The new feature will allow customers to purchase items in Target stores using their mobile phones.
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Michael McNamara, chief information and digital officer for Target, spoke with Recode last week at the National Retail Federation conference in New York, confirming that Target will begin offering its own payment service for in-store purchases. According to McNamara, the payment service will initially only be available to shoppers who have a Target REDcard payment-and-loyalty card.
The introduction of Target Pay will finally allow the retailer to compete with other big box stores that already have their own mobile payment services, such as Walmart — which launched Walmart Pay nationally in July 2016 — and Kohl’s — which launched Kohl’s Pay in October 2016.
It is unclear if Target’s new payment feature will be integrated into the main Target app, the Cartwheel coupon app or both. However, McNamara stated that it makes sense to allow store shoppers to pay for items and use digital coupons all in one step.
Currently, Target allows customers to purchase items at Target.com using Apple Pay. However, the mobile wallet is not available for in-store transactions.