Costco Introduces 'Buy Now, Pay Later' Option for Expensive Buys
Costco, the renowned warehouse retailer, has introduced a new payment option for online shoppers: a 'Buy Now, Pay Later' (BNPL) program in partnership with Affirm. Under this scheme, customers can split large purchases into smaller installments for greater flexibility.
Beginning this week, eligible online purchases ranging from $500 to $17,500 can be dispersed across repayment plans spanning three to 36 months, contingent on customer eligibility and creditworthiness. Interested shoppers will face APR rates that range from 10% to 36%.
To utilise the BNPL service, customers must first verify their eligibility during the checkout process, which is designed to be swift and without impacting their credit score. Once approved, they can proceed to choose a payment plan and make their purchases through the Affirm app or website, with the option for automated deductions. However, it's essential to note that this service is currently limited to online transactions on Costco's website.
The BNPL program provides a practical solution for managing large purchases over time, allowing customers to budget for big-ticket items such as electronics or appliances more easily. Nevertheless, it's pertinent to consider the potential costs associated with these plans, as interest will be charged, potentially leading to a higher total cost for the purchase. Missed payments could also negatively impact credit scores.
While Costco's expansion into BNPL services marks a step forward in financial innovation, it is essential for customers to carefully assess the benefits and potential drawbacks before opting for this payment method.
- Costco's partnership with Affirm for the 'Buy Now, Pay Later' program is not just confined to warehouse retail, it also extends to their online business, offering smooth and credit-score-friendly eligibility checks for technology purchases.
- This new finance solution, available for tech, business, and other purchases, allows customers to manage large payments more conveniently, but it's crucial to bear in mind the associated interest rates and potential consequences of missed payments.
