A method and system for coupon distribution and use. A merchant provisions a coupon with a coupon server, and the coupon server delivers the coupon to a consumer's device via SMS, WAP push, e-mail, instant messaging, or in another manner. The consumer then presents the device to a merchant at a point of purchase, to convey the coupon from the consumer's device to the merchant for validation and redemption with respect to a sales transaction between the consumer and the merchant. The coupon can be conveyed from the consumer's device to the merchant in various ways, such as via radio frequency transmission or reading of the coupon from a display of the device.