Mobile payments on Target with 'Wallet' debut

As the name implies, Wallet lets you visit Target stores and check out with the Target app. Wallet also lets you use your Cartwheel digital coupons and discounts, but that's not new - the Target app has allowed you to do that for a while.

With Wallet, guests can pay using their Target REDcard and save with Cartwheel-all in a single scan of their phones at checkout.

The dedicated card acts as both a debit card and store credit card, offering 5% cashback on purchases and speedier checkout than a standard chip and Pin card.

"Wallet in the Target app makes checkout easier and faster than ever", Mike McNamara, Target's chief information and digital officer, said in a statement. Unlike other payment solutions, Wallet is not designed for use as a general means of payment and instead is very specific to use by Target customers, when in a Target store. You can download or update your own Target app for iOS or Android right now to get the new feature.

However, Wal-Mart Pay uses QR code for scanning items, Target's system is barcode-based.

If you have a Target REDcard, there's really no reason not to set up the Wallet payment system. As a result, the main selling point suggested by Target is that it will speed up the checking out process when visiting Target, and according to the company by as much as four times.

Target announced a number of new mobile app features back in September, and said this one was on the way.

Where Wallet does have a leg-up on Apple Pay is its integration with Cartwheel.

Vanessa Coleman