Feeding Americans' Debt: Costco Rolls Out Buy Now, Pay Later

Having millions of Americans buried in debt is not enough. They want more.

With credit cards maxed out and Americans desperate to get the supplies they need for day-to-day living, another personal debt-building trap is being rolled out.

Costco has introduced a buy now, pay later option for U.S. customers making large online purchases through a new partnership with Affirm, announced on Wednesday.

Approved Costco members can use Affirm’s service to "pay over time" for eligible online purchases ranging from $500 to $17,500, according to Affirm. Costco noted on its website that "many" online items are eligible for these installment plans.

During checkout, members undergo a "quick, real-time eligibility check" to view available installment plans, Affirm stated. The company emphasized that the plans offer "transparent pricing and credit offers."

Installment plans range from three to 36 months with APR rates of 10%-36%, depending on the purchase, per Costco’s website. This payment option is exclusive to Costco’s online platform and not available at its physical warehouses.

As of early May, Costco operated 624 warehouses in the U.S. and Puerto Rico, plus 281 in 13 other countries. While physical locations typically carry fewer than 4,000 product types, the e-commerce site offers 9,000 to 10,000 on average.