Point of Sale
See more of the story

Target will roll out a mobile payment option that can be used in stores through one of its apps later this year, according to a report by Recode.

A Target spokesman confirmed the report but did not offer any other details.

It's not a huge surprise that Target is going this route given that many of its competitors such as Kohl's and Wal-Mart have launched mobile payment features in their apps in the last year. At the same time, other retailers such as Best Buy allow customers to check out in stores using Apple Pay, Samsung Pay and Android Pay.

Meanwhile, Target had put rolling out a mobile payment system on the backburner as it first focused on rolling out chip-and-PIN readers and chip-based payment cards in the aftermath of its data breach. More recently, it prioritized getting its website up to snuff and on other core projects.

Mike McNamara, Target's chief information officer, told the Star Tribune last year that it was not one of the top 80 projects the company had initially green lighted after he first joined the company in 2015. Instead, it was one of the 700-plus projects that were sidelined at the time.

"We constantly re-evaluate mobile mobile and I've no doubt we'll do it," he said last summer. "But you look at the uptake of mobile wallets that are out there and it's still pretty disappointing."

He added then that Target executives would re-evaluate it every six months or so. Well, it appears a mobile wallet option has now made the list of active projects.

McNamara told Recode at the National Retail Federation conference last week that Target plans to introduce a mobile payment feature to at least one of its apps that will initially be just for Redcard holders.