Costco Expands Payment Options with Affirm

Coffee giant Costco, which has a global customer base of over 127 million people, recently introduced an innovative buy now, pay later (BNPL) option for its online shoppers through the Affirm payment network. According to their annual report from 2023, members typically visit the store about 30 times each year and spend around $3,000 annually.

Now, online shoppers can add items valued at or above $500 to their carts and take advantage of flexible payment plans lasting up to 18 months. Once approved, users can repay Affirm without late or hidden fees, paying interest over the agreed period.

Rising Popularity of BNPL

BNPL services have gained significant traction among consumers in recent years. Data from Capital One Shopping indicates that by 2024, approximately 86.5 million Americans were using this type of service, an increase of 6.92% year-over-year. On average, BNPL loans are smaller and shorter than traditional instalment loans; while the latter typically total around $800 over eight to nine months, the former usually amount to just under $135 over six months.

Costco’s Decision to Offer Affirm

In May 2025, Costco announced a partnership with Affirm aimed at enhancing customer trust and loyalty. The company sought new methods to integrate BNPL options during times of economic uncertainty when consumers were more cautious about spending.