Costco implements revolutionary ‘buy now, pay later' plan for customers — but there's one catch
Cash-strapped Costco customers can now stock up for summer without money in the bank.
The cut-price retailer is revolutionizing their shopping experience by partnering with 'pay over time' platform Affirm.
Starting this week, Costco members can undergo a 'quick, real-time eligibility check' with Affirm before choosing from 'personalized' monthly payment plan options.
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But there is one catch: Sales must be between $500 and $17,500, meaning shoppers can't use Affirm for small purchases.
However, Affirm honcho Pat Suh says that's no big deal, given that Costco customers often buy in bulk.
Starting this week, Costco members can undergo a 'quick, real-time eligibility check' with Affirm before choosing from 'personalized' monthly payment plan options.
dennizn – stock.adobe.com
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'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,' he declared in an announcement released on Wednesday.
'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.'
Sales must be between $500 and $17,500, meaning shoppers can't use Affirm for small purchases.
Sarah Rypma – stock.adobe.com
It comes as many Americans turn to 'buy now, pay later' platforms to pay for food amid inflation and ongoing economic uncertainty.
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Earlier this year, Klarna partnered with DoorDash so that users can pay off their fast food orders in installments.
The announcement from Affirm and Costco comes just a week after Costco revealed sales growth slowed during the month of April.
According to Supermarket News, Costco said comp-store foot traffic was up 4.2% in April, down from 6.1% in March.
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