Sources Say Target in Initial Stage of Developing Its own Mobile Wallet

Reportedly, Target is creating a mobile wallet app following the footstep of rival Walmart. The step taken by the big retailers mainly relate to avoiding payments to the credit card companies and their efforts to take on traditional tech companies when it concerns e-commerce payments.

Both the retailers are members of the Merchant Customer Exchange, that's creating a digital payment system called CurrentC.

Right now, Apple Pay, Samsung Pay are and Android Pay are the effective U.S. digital payment standards among the paying in apps for retail stores with a smartphone. The trio works with a huge number of financial institutions. These have increasingly become widely accepted at a large number of locations with questions lingering about the requirement of more payment systems coming in the market.

Target so far has not tested its wallet in stores according to a source. The entry of Target into the market will create a strong competitor in already crowded market.

On Friday, Eddie Baeb a Target spokesman said "Target is a participant of the MCX and we are testing its CurrentC mobile wallet with guests as part of a pilot in Columbus, Ohio."