Costco comes with good news, finally! In its quest to offer the best to its customers (and in this volatile and unstable economy), it has decided to offer consumers the option to “buy now and pay later”, exactly. What we know at home as “put it on a tab”, which we do in small shops, is now something Costco, through the payment app Affirm, will allow in its stores. Keep reading, we’re going to tell you what this means for you!
Buy now and pay later
That’s right, this option will allow shoppers to finance their purchases in monthly payments, with the term determined at the checkout. Customers can, once all products have been rung up, choose their type of payment as long as the total exceeds $500 (and up to $17,500), and they will have options of up to 36 months to pay them.
Of course, we love the idea that a store like Costco wants to help consumers in this way.
Will there be interest?
Of course, like everything in life, nothing is free, and the payments you decide to split over months will carry an annual interest rate that could range from 10% to 36%, which means the purchase will end up being a little more expensive…
For example, a purchase of $815 could turn into a cost of $840 in six months, $875 in twelve months or $903 in eighteen months, if the rate is 20%. But, there’s good news: there will be no penalty for paying off the debt early.
Affirm, but not the same as Affirm
Many might think that if they already have a balance with Affirm they won’t be able to apply for credit, but don’t worry about that. When registering or checking if you qualify for this plan, Affirm understands that this check is only a “soft inquiry”, so it doesn’t affect your credit score. However, later payments might be reported to credit agencies, depending on the user’s activity.
Costco and the Gas Stations
Not only have they made shopping easier, Costco has extended the hours of its gas stations in most locations around the country. Now, the pumps will be open until ten at night.
And the gas station in Jacksonville?
Oh… Costco suffered a setback in Jacksonville. The company had proposed building a new members-only gas station in the parking lot of its location on Gate Parkway. However, on May 27, the Jacksonville City Council voted against the rezoning needed for this project…
With a 15-3 vote, the City Council rejected the ordinance that would have allowed a change in the land use of the 13.9-acre lot.
Of course, this setback has blocked one of Costco’s expansion plans for its services.
Between opportunities and challenges
Costco’s situation reflects the tensions that large retailers face as they try to adapt to the new demands of consumers and local regulations. While the new options seem well-received by customers, the expansion initiatives, like opening gas stations, are not entirely clear and will need to overcome regulatory obstacles and neighborhood opposition…
And the future?
For now, consumers will enjoy new ways to finance their purchases and that’s very good news!
Adapt or die, that’s what we always say, and now Costco is showing that it’s more than capable of adapting and innovating in the market. And yes, even though things didn’t go well in Jacksonville… for now!