Target's Smart Move

The Target Corp. (Minneapolis) will be the pioneer in the U.S. inoffering “smart cards” to its customers. Smart cards contain anembedded computer chip that contains information about customerpurchasing habits.

These high-tech cards have taken off in Europe and Asia, but notin the U.S. because stores are required to install chip readers. Sofar, retailers have been hesitant to purchase such readers, hopingthey could wait until consumers embraced the idea and signed up forthe cards. Target has taken the initiative, however, and plans toinstall the chip-reading payment terminals in all of its nearly 1,000discount stores by the end of 2002.

Target hopes to issue millions of smart cards in the near future,starting this fall by mailing cards and applications. The companyalready has a reported 36 million credit card customers under itsbelt. The card will feature Target's trademark red-and-white bull'seye logo.

In hopes of appealing to the consumers, advantages such as rewardsfor those qualifying will be offered. The smart card, having both achip and a magnetic strip, can double as a standard credit cardanywhere Visa is accepted. A new feature allows consumers to have afree card reader for home computers, which communicates smart cardinformation, and allows perks like downloaded electronic coupons fromthe Target website.