Costco, Affirm partner to launch buy now, pay later option for online orders
Costco is the latest retailer to cash in on the "buy now, pay later" craze.
The wholesaler announced on May 14 that it partnered with the payment platform Affirm to give customers an alternative option when making online purchases.
Costco members shopping online can now use the Affirm payment option to pay for items over time in installments, as opposed to all at once, according to the San Francisco, California-headquartered company's news release
“Costco members in particular know the value of planning ahead and buying in bulk," Pat Suh, Affirm’s senior vice president of revenue, said in a statement. "We're excited to offer them an alternative to traditional credit, helping them confidently manage their spending on larger purchases without hidden fees.”
How does Affirm work?
The company said Costco customers can only use the Affirm payment option for larger purchases.
The Affirm buy now and pay later method is available for purchases ranging from $500 to $17,500, according to the release.
The installment plan offers several monthly payment options for customers to choose from. The length of the plan and price of the item(s) will determine the number of installments needed to pay off the purchase.
The pay later option is also only available for online purchases, not at stores.
Retailers are capitalizing on buy now, pay later options
In recent years, the buy now, pay later model has become increasingly popular among consumers.
According to a 2025 report from the Consumer Financial Protection Bureau, roughly 21% of consumers with a credit record were using a buy now, pay later plan from one of six major firms in 2022.
Earlier this year, DoorDash began offering Klarna, one of the popular buy now, pay later platforms, as a payment option for all orders on its app.
Popular weight loss drugs, including Zepbound and Wegovy, are also available through Affirm, announced FuturHealth, a telehealth provider, in March.
Melina Khan is a national trending reporter for Paste BN. She can be reached at melina.khan@usatoday.com.