Costco rolls out a Buy Now, Pay Later option for online purchases

Costco is launching a new program that could change the way shoppers pay for their purchases.

Through a partnership with Affirm, the warehouse retail chain will offer a payment plan on some online purchases. The Buy Now, Pay Later option will allow Costco shoppers to use Affirm at checkout to pay over time. Customers will have to pay interest on their purchases, ranging from 10% to 36%.

“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,” Pat Suh, Affirm’s SVP of Revenue said in a statement. “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.”

Customers will be able to use the monthly payment plan on purchases from $500 to $17,500 with repayment periods ranging from three to 36 months.

Any Affirm purchase would be subject to approval and eligibility.