Costco has announced a new partnership with Affirm, allowing U.S. customers to utilize a buy now, pay later payment option for large online purchases. This initiative was revealed on Wednesday, enabling approved Costco members to finance purchases ranging from $500 to $17,500 directly through the retailer's website.
Customers interested in this payment option will encounter a quick eligibility check during the checkout process. Affirm's service offers installment plans that vary in duration from three to 36 months, with annual percentage rates (APRs) ranging between 10% and 36%, contingent on the specific purchase.
According to Costco, many online items are eligible for this payment method, which is exclusively available for transactions on its e-commerce platform. As of early May, Costco operates 624 warehouse locations across the U.S. and Puerto Rico, along with 281 additional locations worldwide. The retailer's physical stores typically stock fewer than 4,000 products at any given time, while its online inventory includes between 9,000 and 10,000 items.
The introduction of the buy now, pay later service aligns with Costco's ongoing efforts to enhance customer experience and financial flexibility. This development comes on the heels of positive financial results for the retailer, which reported a 15% increase in total revenue, reaching $72.1 billion in its most recent quarterly report.
This partnership with Affirm represents a growing trend among retailers to incorporate flexible payment solutions to accommodate varying consumer purchasing preferences.