Target (TGT) Making Money amidst the Amazon Apocalypse

Target (TGT) is making money amidst the Amazon apocalypse but how long can it survive?

Target (NYSE: TGT) will survive longer than you might think because of a clever utilization of cutting edge-technology. For instance, Target is deploying a mobile checkout solution called “Skip-the-Line.”

Will Skip-the-Line Help Target (TGT) Make Money?

Skip-the-Line allows Target (TGT) associates to accept credit card, debit card, and check payments from mobile device, a press release claims. Thus, consumers can pay for merchandise without going near a register.

However, Skip-the-Line is about efficient store operations not customer convenience. To explain, Target could reduce the number of cashiers and registers; and associated costs, if Skip-the-Line succeeds. Thus, an obvious benefit of Skip-the-Line is less need for the expensive holiday staffing.

Additionally, lines could be shorter and faster which will make Target more attractive to shoppers. I have walked out of stores without buying because of long lines. I imagine I am far from alone.

Skip-the-Line could enable Target to reduce the number of registers in its stores. Hence, Target could remove registers and replace them with displays to sell more merchandise.

Therefore, Skip-the-Line is automation designed to make Target stores more profitable; by reducing the need for employees. Hence, cynics will charge Skip-the-Line kills jobs.

Target (TGT) is not Accepting Apple Pay

Interestingly, Skip-the-Line will not work with mobile wallets like Apple Pay and Google Pay. Target (TGT); like Walmart (NYSE: WMT), refuses to accept those NFC payment solutions.

Instead, shoppers have to access Apple Pay through the Target app. Target only accepts Apple Pay through its app. Thus, Target is trying to force consumers to use its app for payment.

Target is forcing customers to use its app because it does not trust Apple’s (NASDAQ: AAPL) security features. Moreover, Target apparently trusts Alphabet’s (NASDAQ: GOOG) security even less its app does not accept Google Pay. On the other hand, Target’s app will accept PayPal (NASDAQ: PYPL).