Target Gets Its Own Digital Wallet

Target announced Monday (Dec. 4) the launch of a digital wallet in the Target app.

According to a company blog post, the Wallet feature in the Target app will provide customers with a new way to pay and save at Target stores. Using Wallet, Target customers can pay using their Target REDcard and save money with Cartwheel, all with a single scan of their mobile devices at checkout. The goal is to make checkout quicker, and to offer convenient digital savings by including Cartwheel offers and weekly ad coupons, along with the 5 percent REDcard discount. Coming soon, Target said guests will also be able to store and redeem Target gift cards with Wallet.

“Wallet in the Target app makes checkout easier and faster than ever,” said Mike McNamara, Target’s chief information and digital officer. “Guests are going to love the convenience of having payment, Cartwheel offers, weekly ad coupons and gift cards all in one place with Wallet.”

The move comes as Target recently announced a new focus on eCommerce, an effort that could boost its stock in the next two years by as much as 20 or 30 percent, according to financial investment magazine Barron’s. The retailer has been making competitive moves against Amazon, which have already helped increase revenue from internet-based transactions. According to the Barron’s data, eCommerce represented 4.4 percent of sales in the latest fiscal year, up 2.8 percent from fiscal 2016 – higher than growth seen at Walmart stores.

The introduction of several exclusive Target brands, such as children’s clothing line Cat & Jack, is also boosting growth. Target recently announced it will be adding 12 exclusive brands by the end of 2018, eight of which will be available during the 2017 holiday shopping season. The brands will include products for babies, children, men, women and home goods.