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Target Plans to Offer Apple Pay After Chip-and-PIN Card Upgrade

targetTarget CEO Brian Cornell spoke at Re/code's Code Conference in Palos Verdes, California today, where he confirmed that the company plans to offer in-store support for Apple Pay in the future. According to Cornell, while he'd love to have Apple Pay available "right now," support will not be coming until Target upgrades its system to support integrated circuit credit cards to comply with new standards.

Integrated circuit cards (or chip-and-PIN cards) replace the magnetic stripe on a credit card or debit card with an embedded microchip. The microchip communicates with a supported point-of-sale system to authenticate transactions. Chip-and-PIN cards are already used in many countries around the world because they're believed to be more secure than traditional credit cards. In the United States, retailers are being encouraged to adopt point-of-sale systems that support chip cards by the end of 2015.

Target is especially eager to move to a more secure transaction system following a major data breach in late 2013 that saw hackers obtaining payment information for approximately 40 million of its customers. The move is a major transition for Target, and Cornell says he doesn't want to "distract the team" with work on other payment systems.
"Our focus is on getting chip-and-PIN in place in time for the holidays," Cornell said at the second annual Code Conference in Rancho Palos Verdes, Calif. "Down the line we want to accept all the types of payments that our guests want. But this decision was all about focus. ... It is a major undertaking to convert to chip-and-PIN, and I decided that we can't distract the team."
Cornell says he has met with Apple CEO Tim Cook, and once the chip-and-PIN transition is completed, Target will be "open-minded" about supporting additional payment systems like Apple Pay. Target already supports Apple Pay in its iOS app.

Related Roundup: Apple Pay
Tag: Target


Top Rated Comments

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55 months ago
My local Target has NFC readers that they've switched off, so saying they'd love to do it right now is ********.
Rating: 18 Votes
55 months ago
Now if we could just add our Target cards to Apple Pay. I want to save my 5%!
Rating: 11 Votes
55 months ago
FWIW, it's not actually chip-and-PIN, it's just chip. The banks (unfortunately) get to decide if their cards will use PIN or signature with the chip, and most in the US have opted to keep us in the dark ages with signature.
Rating: 11 Votes
55 months ago
Your move Wal-Mart

That will be the last major domino to fall in favor of :apple: Pay
Rating: 8 Votes
55 months ago
I wonder how long until Walmart gets the message. CurrentC is dead.
Rating: 8 Votes
55 months ago

Now if we could just add our Target cards to Apple Pay. I want to save my 5%!


REDcard with Apple Pay? That would be killer, especially with combining that with Cartwheel.

BL.
Rating: 6 Votes
55 months ago
Pathetic because Apple Pay is already more secure than Chip and Pin. And faster.
And easier to implement. Sure, get Chip and Pin working. Sounds great. However I don't really want to enter a pin. And assuming it is a four digit number which the dude behind me will know looking over my shoulder, I'm not sure it is secure. Though I don't really know what the Chip part of the process really does. But I don't see how it can be more secure than one-time use tokenization.
Rating: 5 Votes
55 months ago

My wife and I have refused to shop at Target since their breach. In the one exception, we paid cash.

After a breach that massive, where so many systems were compromised, I don't have much confidence that they were able to completely sanitize their credit card processing infrastructure.

It's too likely that something is still lurking in a dark corner of their network. I'm not using a credit card at Target unless it is something I can invalidate with little or no hassle.


They're using end-to-end encryption now from my understanding, and EMV will further help the situation.

Supporting contactless is far from a major undertaking. It's already in their new readers. It's a simple software push to turn it on.
Rating: 5 Votes
55 months ago
Rating: 5 Votes
55 months ago
not good enough, Mr. CEO.

why work on implementing chip-and-pin, which few people have yet, when you could implement tokenized NFC which millions and millions have and want to use, AND is better than chip-and-pin to begin with?
Rating: 5 Votes

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