Although it is still a relatively new concept, mobile coupons, accessible through Smart Phones, are catching on quick. This week, retail giant Target announced that it will allow shoppers to present digital coupons at checkout.  Target says it will be the first major nationwide retailer to implement bar-code technology in all of it’s stores.

A consumer opts-in by visiting the retailer’s website or sends a text message code to a  number set up by the retailer.  The consumer then receives emails or text messages with coupons for various products.  The consumer chooses the coupons they want and shows the cashier their cellphone screen at checkout.

The screen is then scanned with a bar-code scanner and the discount is applied. Currently, coupons are not sent to consumers based on their buying habits, but that will be changing in the future.

According to mobile coupon provider Cellfire, digital coupons are redeemed at a 5% to 20% rate, compared with about 1% for printed coupons.  This is a stat you cannot ignore.