SNL Financial – As the list of in-store mobile payment apps grows, more large retailers are giving consumers the option to pay with their smartphones.
CVS Health, the largest drugstore chain in the U.S., is one of the most recent merchants to build out its mobile app to enable in-store payments. With CVS Pay, customers can store payment methods and present a barcode to a cashier at the point of sale. Users also can manage prescription information and coupons within the same application.
For retailers like CVS, identifying consumers’ buying habits and preferences is important, according to Perry Kramer, vice president and practice lead at Boston Retail Partners.
“The easiest way to identify the customer is in the payment space,” Kramer said. In exchange for valuable data, merchants can give shoppers a more “frictionless” payment experience, he added.
Still, mobile wallets are an IT challenge for most stores. Kramer said many retailers are focused on updating antiquated point-of-sale systems and are busy with EMV implementation. Only the largest retailers with enough critical mass can feasibly build out an app with payments capabilities, he said.
Read full article: CVS Pay joins growing list of in-store mobile payment apps