Still have any space left on your smartphone screen? If so, you may want to check out Kohl’s Pay, the eponymous payment alternative available now. The nationwide department store chain launches Kohl’s Pay as part of its popular loyalty program described in the following article.
Discount department store retailer Kohl’s launched its new payment application, Kohl’s Pay, across more than 1,100 stores nationwide ahead of the busy holiday shopping season.
Kohl’s Pay allows the 25 million consumers who already have the Kohl’s branded credit card to make purchases with their iPhone or Android smartphone by launching the Kohl’s App and selecting Kohl’s Pay from the menu options to bring up a QR code reader.
Customers scan the code, apply any savings offers or Kohl’s Cash within the app, then tap to complete their purchase: The app automatically applies Kohl’s Cash and rewards points, and stores transactions on customers’ mobile devices for easy returns.
Kohl’s has struggled mightily in a turnaround that has now lasted years. But its Kohl’s Cash program, which the retailer previously integrated into its mobile app, has been a “brilliant” success, according to Shelley E. Kohan, VP of retail consulting at store analytics firm RetailNext.
“There’s something about the ‘Kohl’s Cash’ that drives the consumer to really plan their shopping around their Kohl’s Cash,” Kohan told Retail Dive earlier this year. “People are spending so much effort and time in converting, [Kohl’s stores] have a strong bond with the customer and are known for that low price.”
Large US retailers have discovered that single merchant loyalty programs are the way to go. Coalition loyalty such as Amex’s Plenti program have not been able to muster the attention as have individual programs such as Starbucks and Amazon Prime. When loyalty programs are integrated with payments and marketing as Kohl’s is doing—that’s the rocket fuel to achieve escape velocity. Kohl’s Pay joins a crowded field of mobile apps, including other retailers, restaurants, and petro/C-Store chains jumping into the ring. Expect to see more coming to a smartphone screen near you.
Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group
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