Costco shoppers lean on the retailer for bulk purchases, affordable gas and a pretty iconic selection at its food courts. But those won't be the only things patrons of the wholesaler can count on the next time they shop. Costco is implementing a major change that will transform the way purchases are made.
Earlier this month, the chain announced that it will be partnering with popular pay-over-time service Affirm — essentially a buy now, play later option — to provide members with an additional way to pay at checkout.
“As summer approaches, we're seeing more consumers turn to Affirm to prepare for the season ahead — whether it's outdoor entertaining essentials, like a new barbecue or patio furniture, a storage shed or a new set of appliances,” said Pat Suh, Affirm’s SVP of Revenue in a press release. “Costco members in particular know the value of planning ahead and buying in bulk. We're excited to offer them an alternative to traditional credit, helping them confidently manage their spending on larger purchases without hidden fees.”
The new offering will allow Costco members to select from Affirm’s monthly payment plans on purchases ranging from $500 to $17,500. But, it will only apply to purchases made online with the caveat that the items must be eligible for Affirm payments.
Currently, Costco's website highlights categories like electronics, furniture, home improvement and home and kitchen for Affirm payment, which makes sense considering these categories may feature more big ticket items. Customers should also note that payment options will depend on the purchase amount, and rates can range from 0% to 36% APR.
You might be wondering how using Affirm is different from using a Costco credit card. With Affirm, you're essentially on installment plans, and in some cases, you might qualify for 0% APR. Whereas with the Costco Credit card, you could have a variable APR between 19.49% - 27.49%. Affirm also doesn't charge a late fee, but if you do pay late, it could impact your credit score. But unlike the Costco credit card, you will not get any discounts or perks (like cashback on purchases) if you use it.
So the next time you hop on to Costco.com, you may want to weigh your payment options.
Cameron (she/her) is a staff writer for Good Housekeeping, where she covers everything from holidays to food. She is a graduate of Syracuse University, where she received a B.A. in magazine journalism. In her spare-time she can be found scrolling TikTok for the latest cleaning hacks and restaurant openings, binge-watching seasons of Project Runway or online shopping.
