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Starting today, Target will become the first nationwide retailer to utilize mobile coupons. Consumers will be able to redeem the coupons when the bar code on the phone is scanned at checkout.

This represents a huge step in a quickly growing market. In tough economic times, people like to save money. But not everyone likes to clip coupons and keep them on their person. Enter the cell phone, which takes care of clipping and storage for you, and it is always accessible. Cellfire, an industry leader in mobile coupons that led the way with mobile coupons in grocery store chains, says that mobile coupons are more effective. According to Cellfire, mobile coupons are redeemed at a 5% to 20% rate, compared with about 1% for print coupons.

With the Target coupons, interested consumers must opt in for the service by texting “COUPONS” to 827438. Once registered, consumers receive an SMS message that directs them to a mobile web page, where offers can be redeemed via bar code.

Currently the coupons are not dynamically issued based on a consumer’s interests or shopping history, but that is one of the options in consideration for the future. Consumer privacy, however, remains Target’s number one priority.