Costco has joined the growing trend of “buy now, pay later” services by partnering with Affirm, the payment platform, to provide customers with an alternative payment option for online purchases.
Affirm Payment Option for Costco Members
On May 14, Costco announced the partnership with Affirm, allowing its members to make purchases online and pay over time in installments. This new service offers a flexible way for customers to manage their spending by spreading out payments, as opposed to paying for items all at once.
“Costco members in particular know the value of planning ahead and buying in bulk,” said Pat Suh, Affirm’s senior vice president of revenue. “We’re excited to offer them an alternative to traditional credit, helping them confidently manage their spending on larger purchases without hidden fees.”
How Affirm Works at Costco
Affirm’s “buy now, pay later” option is available for larger purchases ranging from $500 to $17,500. Customers shopping online can choose from several monthly payment plans depending on the price of the items and the length of the installment plan.
However, this payment option is exclusively available for online purchases and cannot be used for in-store transactions.
The Rise of Buy Now, Pay Later Models
In recent years, the buy now, pay later (BNPL) model has gained significant traction among consumers. According to a 2025 report from the Consumer Financial Protection Bureau, about 21% of consumers with a credit record were using a BNPL service from one of six major firms in 2022.
Earlier this year, DoorDash began offering Klarna, another popular BNPL platform, as a payment option for all orders on its app. Additionally, popular weight loss drugs, including Zepbound and Wegovy, are also available through Affirm, according to an announcement by telehealth provider FuturHealth in March.
