Costco Rolls Out ‘Buy Now, Pay Later’ Program — But There’s a Price for the Perks

In a bold move to keep big spenders rolling their oversized carts through warehouse aisles, Costco is diving headfirst into the “buy now, pay later” trend — but don’t expect to use it for a hot dog combo.

Starting this week, the retail giant is teaming up with payment service Affirm to let members break up large purchases into manageable monthly chunks. The catch? It’s only available for purchases between $500 and $17,500.

So yes, you can finance that massive patio set, home security system, or deep freezer filled with enough steak to survive the apocalypse — but you’re still paying cash for socks and snacks.

High-Volume Spending, Modernized

“As summer approaches, we’re seeing more consumers turn to Affirm to prepare for the season ahead,” said Pat Suh, Affirm’s SVP of revenue. “Costco members in particular know the value of planning ahead and buying in bulk.”

Suh praised the partnership as a smart, flexible alternative to traditional credit cards, emphasizing that there are no hidden fees. “We’re helping customers budget for the big stuff — without the gotchas.”

Customers will undergo a real-time eligibility check at checkout, then choose from a range of personalized payment plans. There’s no need to juggle interest rates or wait for approval from a bank — Affirm handles it all instantly.

Why Now? Follow the Money

The rollout couldn’t come at a more strategic time. Costco just posted a slowdown in monthly sales growth, with comp-store traffic rising just 4.2% in April — down from 6.1% in March. Inflation, tightening wallets, and economic unease are making consumers think twice before splurging, even at discount mega-stores.

And they’re not alone. Other retailers are doubling down on buy-now-pay-later partnerships. Klarna recently inked a deal with DoorDash — yes, people are now financing fast food.

The Bigger Picture

Across the country, Americans are turning to installment plans just to stay afloat. According to a LendingTree report earlier this year, more than 1 in 5 consumers have used “pay later” services to cover groceries. While the convenience is clear, financial experts caution that it can also become a slippery slope of overextension.

Still, for Costco’s core crowd — budget-conscious, bulk-buying families — Affirm could be a lifeline. Think back-to-school laptops, new kitchen appliances, or that once-a-decade garage overhaul.

Just don’t try to BNPL your rotisserie chicken.