
Mobile couponing has been something of an exotic and unfamiliar beast to both retailers and consumers until fairly recently. However, now, just like American Idol mainstreamed (if I can use it as verb) text messaging for US users a couple of years ago, Target is potentially going to do the same for mobile couponing.
The company has launched what it calls the "first-ever scannable mobile coupon program." The announcement has been widely covered, but the release explains the mechanics of the program:
Guests can opt-in to the program on their PC at Target.com/mobile, on their phone at m.target.com or by texting COUPONS to 827438 (TARGET). After opt-in, guests receive a text message with a link to a mobile Web page that contains multiple offers, all accessible through a single barcode. Offers are single use and expire on the date listed.
Issues with the POS and redemption, which have historically plagued mobile couponing (outside SMS), have reportedly been resolved with a technology upgrade that permits the retailer to scan barcodes at the register:
Target's point-of-sale scanning technology makes mobile coupons possible, and Target is the first major retailer with the ability to scan mobile barcodes in all of its stores.
Retailers are on the vanguard of mobile marketing and finding success in early trials with advanced, as well as integrated, digital marketing approaches. Witness also Placecast's geofencing SMS marketing program with retailers.

Perhaps no other retailer, save Wal-Mart, has the kind of clout and visiblity to push mobile couponing quickly into the mainstream. Target it must also be said is not a mainstream retailer from a digital marketing perspective. The company has been very systematic and progressive in developing digital strategy, including mobile.