Target has announced its new mobile app has been optimized for Apple’s new mobile wallet, Passbook, just in time for the release of Apple’s iPhone5.

The new app allows users to save and store mobile coupons according to TechCrunch. Many people believe couponing will be an important use case for Passbook, and will assist users in moving from mobile apps to mobile wallets. Target has been a leader in mobile couponing, and it first launched scannable coupons in 2010. Several other brands have integrated their apps with Apple’s Passbook, including American Airlines, United, Fandango and Live Nation.

Yankee Group Research Director Sheryl Kingstone comments

“We are still waiting for Passbook to mature. While there is a link to Passbook- compatible apps, so far there are only a handful of apps that work. It is also a little buggy. Target is ahead of the game, especially considering 63 percent of Yankee Group respondents show an interest in using mobile coupons. Coupons are a great gateway to create a mobile relationship with customers. However, retailers must understand that sharing generic coupons leads to a poor customer experience. It needs to create and build toward loyalty not just price discounting. Newer mobile-oriented initiatives done correctly can not only keep customers engaged and active in loyalty programs, but also compel them to spend more with coupons. Considering that smartphones can bridge the divide between online and physical domains, it is critical for retailers and brands to understand the impact of mobile shoppers on their loyalty program strategies. Passbook is just one vehicle among many for retailers to move into the mobile transactions market.”