After Wal-Mart Stores, Inc. (WMT), Rumors of Target Corporation (TGT)’s Mobile Solution Emerge
Providing payment solutions through mobile has big potential. In the last one year period, more companies have entered the space. Most recently, Wal-Mart Stores, Inc. (NYSE:WMT) launched Wal-Mart Pay. Now, Target Corporation (NYSE:TGT) is following the leader in the retail segment to launch its own mobile payment solution. The two retailers’ move might be the failure of the retailers’ joint bid to develop their own payment app.
Talking To Credit Card Firms
Target Corporation (NYSE:TGT) is said to be talking to credit card firms to finalize its partnership deal for its mobile payment solution. It remains to be seen as to how the consumers are going to react to the retailers launching their own mobile app for payment. The retailers might have thought that holiday season is the right time to unveil the app to attract more users. However, there is a potential threat that it might lead to a wedge between its interests and consumers.
As a result, the retailers would have access to key data of the consumers like their personal information, as well as, the credit card number. Also, consumers would have to create another profile for making payment for goods purchased. At one point in time, consumers might get irritated and start believing that it was troublesome to use retailers’ digital payments services.
Ultimate Choice Rests With Customers
Target Corporation (NYSE:TGT) or for that matter, any retailers, might believe that they would have to pay a small cut if the consumers selected to pay through different solutions provider. Tech companies Alphabet Inc (NASDAQ:GOOGL)’s Android Pay, Apple Inc. (NASDAQ:AAPL)’s Apple Pay and SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF)’s Samsung Pay were the big players. Aside from these, Paypal Holdings Inc (NASDAQ:PYPL) has been improving its position.
There are reports indicating that proprietary mobile payment solutions were not making the expected proposition. Therefore, it remains to be seen as to how retailers like Target Corporation (NYSE:TGT) will gain from their payment solutions. Wal-Mart Stores, Inc. (NYSE:WMT) might count upon their revenue size, which is nearly five times higher than the Target.
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