Target Thinks Smart Move Is To Dump Cards
By George Anderson
Target has decided to phase out its Target Visa smart cards because of lack
of interest (use) by consumers.
The card, using a computer chip, was intended to allow users to download coupons
online or from in-store kiosks for use when shopping at Target. The chain had
the card program in place for less than three years.
John Gould, director of consumer lending and bank cards at research firm TowerGroup
told Reuters, “Target was on the right track. I don’t think they gave it time
to mature.”
Target will continue to offer its Visa card after the smart cards are phased
out.
Moderator’s Comment: What
are your thoughts on Target’s plan to dump its smart card program?
It’s hard to criticize the chain after it invested $50
million and over two years on the smart card program. That said, the technology
has promise and someday some company is going to figure out how to make it work
to the advantage of the consumer and the corporate bottom line. –
George
Anderson – Moderator