Affirm Brings 'Buy Now, Pay Later' To Costco Shoppers

Affirm Holdings, Inc. AFRM shares edged higher on Wednesday after the company revealed a major retail collaboration with Costco Wholesale Corp. COST.

The financial technology firm has entered a long-term agreement to provide its “pay-over-time” services to online Costco shoppers across the U.S.

The partnership will enable eligible members to access Affirm’s monthly installment payment options at checkout for purchases over $500 on Costco.com.

Also Read: Affirm Holdings Stock Dives Despite Q3 Report Of In-Line Revenues, Guidance Raise: Why Analyst Says There Is No Positive Catalyst

Starting immediately, Costco members shopping online can select Affirm during checkout to spread the cost of larger transactions across fixed monthly payments.

Following a brief eligibility check, approved users can finance purchases between $500 and $17,500 using tailored plans that include transparent pricing and no late or hidden fees.

The partnership arrives as U.S. consumers seek alternative financing methods for bigger purchases, especially as summer spending ramps up.

Affirm highlighted that product categories like outdoor furniture, grills, appliances, and storage solutions are seeing seasonal demand spikes, making the timing of this offering particularly relevant.

According to Affirm’s SVP of Revenue, Pat Suh, the collaboration reflects both companies’ commitment to value-driven consumer solutions. “Costco members, in particular, know the value of planning ahead and buying in bulk,” said Suh.

Costco generated roughly $250 billion in sales for the fiscal year ending September 2024, driven by consumer demand for daily essentials and high-ticket items.

Affirm’s latest move adds to its growing list of retail partnerships as it scales its presence in the competitive pay-over-time financing space.

Price Action: AFRM shares are trading higher by 5.01% to $56.65 at last check on Wednesday.

Read Next: