In a move which is being billed as a breakthrough for chip cards in the US, retail chain Target says it will issue smart Visa cards to customers nationwide.
Target says it will take a lead role in advancing smart cards in the US, both by issuing smart cards through its Retailers National Bank affiliate later this year and by installing point of sale terminals that accept chip payment in all 990 Target Stores in 2002. The national roll-out, which will include loyalty and payment programmes, follows a successful three-market test of the technology at local outlets.
Paul Vessey, chief operating officer, Visa USA, describes the contract as a milestone. "Target’s adoption of smart cards signals momentum and mainstream acceptance for this new payment technology in the US," he says.
Target joins a small band of US smart Visa card issuers, including First USA, FleetBoston Financial and Providian Financial.