Target is betting on in-app payments

As mobile payments struggle to reach widespread adoption, big-box retailer Target is jumping into the mobile payments market with its own digital wallet, hoping to tie in loyal store-branded card customers.

This week, Target launched Wallet, a bar code-based digital wallet that when enabled, lives within the Target app. It’s only open to Target REDcard credit and debit card customers, who already get a 5 percent discount on purchases. By integrating a digital version of the Target card into the app, it can apply offers and coupons at the point of sale — sweetening the offer for discount-hungry shoppers. Restricting the mobile payment feature to Target cards may seem backwards at the outset, especially given that Walmart offers a similar service compatible with any kind of card. But analysts say it serves important business objectives, which include driving up adoption of store-branded cards and creating a better customer experience by merging loyalty and payments into one place.

Read the full story on tearsheet.co

https://digiday.com/?p=266426

More in Marketing

Inside the strategy that grew Cristiano Ronaldo’s YouTube account to 1M subscribers in 90 minutes

Ronaldo has created the largest sports-themed YouTube channel on the web in two months – but he’s not done it alone.

Marketing execs believe deeper relationships, understanding influencers can avoid potential backlash in politics

Influencer marketing and agency execs believe marketers should instead zero in on understanding the influencers they work with and their audiences rather than totally bowing out during difficult moments.

Digiday+ Research: A look at brands’ 2024 holiday marketing plans

This year, brands and retailers expect their holiday revenues to rise over last year, and they’ll put a bit more focus on new customers rather than existing ones, according to Digiday+ Research’s annual holiday survey.