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Costco Pilots Automated Pay Stations for Faster Checkout
New tech aims to process orders in under 10 seconds, solving retail's biggest headache.
Mar. 28, 2026 at 1:48am
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Costco is overhauling its checkout process, piloting new automated pay stations that promise to process orders in under 10 seconds. By blending employee productivity with high-speed tech, the warehouse giant is betting it can solve the retail industry's biggest headache without losing the low-cost model that keeps its members loyal.
Why it matters
The move to automated pay stations reflects Costco's efforts to adapt to shifting consumer preferences, with more shoppers embracing self-checkout and AI-powered shopping experiences. This could help Costco maintain its competitive edge and appeal to a younger demographic, while also improving operational efficiency and traffic flow.
The details
Costco is rolling out a two-part system, starting with employees expediting the pre-scanning process before customers reach the register. The company is then piloting automated pay stations that allow members to pay for their pre-scanned orders in around 8 seconds on average. Early results show this is improving the flow of traffic and receiving positive member feedback.
- In the company's second-quarter earnings call earlier this month, Costco CFO Gary Millerchip discussed the new checkout initiatives.
- Costco has previously tested self-checkout at select stores, but the system did not appear to stick.
The players
Costco
A major American membership warehouse club that provides a wide selection of merchandise and offers low prices on bulk items.
Gary Millerchip
The Chief Financial Officer of Costco.
Ron Vachris
The new CEO of Costco.
What they’re saying
“In digital, we continue to make strides with our roadmap to deliver a more seamless experience for members in warehouse and online. In the warehouses, we are achieving meaningful improvements in the speed of checkout and employee productivity, both as a result of our mobile wallet enhancements, pharmacy pay ahead and the rollout of employee pre-scan technology.”
— Gary Millerchip, Costco CFO
“We are also piloting automated pay stations that will allow members to pay for their pre-scan orders seamlessly with an average transaction time of around eight seconds. Early results show this is improving the flow of traffic, and we have received great member feedback.”
— Gary Millerchip, Costco CFO
What’s next
Costco plans to continue rolling out the automated pay stations to more of its warehouse locations, with the goal of providing a faster and more seamless checkout experience for its members.
The takeaway
Costco's investment in automated checkout technology reflects the company's commitment to adapting to changing consumer preferences and maintaining its competitive edge in the retail landscape. By blending employee productivity with high-speed tech, Costco aims to solve the industry's biggest pain point of long checkout lines without sacrificing its low-cost business model that has kept members loyal.
