Although some people might complain about having to pay a membership fee, Costco has one of the most loyal customer bases in retail.
The company reported that its U.S. and Canada membership renewal rate reached 92.2%, while the worldwide renewal rate was 89.7%, during its most recent quarter. Those figures show that most members remain committed to the warehouse club, despite growing competition.
But even Costco’s biggest fans have long had one major complaint — checkout can be frustrating.
The retailer’s massive shopping carts, crowded warehouses, and high-volume shopping trips can create long lines, especially during busy periods.
For years, Costco has focused heavily on maintaining low prices and a treasure-hunt shopping experience. But improving convenience has become increasingly important as consumers expect faster and easier transactions.
Now, Costco is making changes designed to make the final step of the shopping trip less of a hassle. After rolling out updates aimed at improving the checkout process, the retailer is also expanding its payment options.
Costco adds a new way to pay at checkout
Costco has introduced an update to its digital membership card that allows members to add any Visa card to the Costco app and use their phone as a payment method in warehouses.
Previously, many shoppers relied on carrying a physical credit card or using the Costco Anywhere Visa Card by Citi.
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The new feature allows members to connect a Visa card directly to their digital membership experience, meaning shoppers can scan their membership card and pay without searching through a wallet or purse. It’s a more efficient — and faster — way to pay.
The change addresses a common pain point.
Costco shoppers often purchase large quantities of items, meaning that even small delays at the register can create bigger bottlenecks throughout the store. Investing in a faster payment option aligns with Costco’s recent push for a more seamless checkout and digital experience.
As CEO Ron Vachris said during the company’s most recent earnings call, “In digital, we are making meaningful strides to deliver a more seamless and convenient experience for our members across the warehouse and online.”
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Why improving checkout and payments matters for Costco
Costco’s membership model gives the company a unique advantage.
Unlike traditional retailers, Costco does not need to convince shoppers to return every week through promotions alone. Members have already paid for access, creating a strong incentive for the company to deliver an experience that makes the membership feel worthwhile.
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But reducing friction matters.
A customer who enjoys Costco’s prices but consistently faces long checkout lines or inconvenient payment options may eventually question whether the shopping experience justifies the effort and up-front membership cost.
Making payments faster helps protect one of the company’s biggest assets: member satisfaction.
The payment update also fits with Costco’s broader digital strategy. The company has been investing in technology, including a stronger mobile app and digital membership features.
For Costco, the goal is not to transform the warehouse into a fully automated shopping experience. Costco’s appeal still comes from walking the aisles and enjoying the treasure hunt.
Instead, Costco is looking for ways to remove unnecessary frustrations. And for members, the benefit is simple — less time fumbling at checkout and more time enjoying the savings that keep them coming back.
Maurie Backman owns shares of Costco.
