As issues with credit card chip readers continue to leave consumers and businesses vulnerable to identity theft, many retailers are rolling out a different type of solution - paying by mobile app. Large retailers such as Wal-Mart already offer this payment option, and starting in October, Kohl's will as well.
Kohl's plans to offer customers the option of checking out using the store's mobile app rather than using their Kohl's charge card. The sale will still go directly to the card, but there will be no need even to carry the credit card into the store. Any usual rewards, promotions, or discounts will be applied, the same as if the consumer had swiped the card.
According to information from Kohl's, about 60% of all purchases are made using a Kohl’s store charge card. The app, which is available for Android and iOS smartphones and tablets, has been downloaded almost 14 million times.
In addition to being able to use their charge card via the app, Kohl’s has also partnered with Apple Pay, connecting its charge card and rewards program to the service. Kohl’s was the first store to do so.
As more and more retailers offer services via mobile apps, consumers may need to carry fewer credit cards. Some, such as the Wal-Mart app, allow users to use payment methods such as their debit card or credit cards that are not associated with Wal-Mart.
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