Costco is finally rolling out the kind of phone-based self checkout that warehouse rivals have used for years, putting its own twist on scan-and-go technology after a long period of watching from the sidelines. The retailer is testing systems that let members ring up items on their phones or at special pre-scan stations, then breeze through a dedicated exit instead of queuing at traditional registers. For a chain known as much for its long lines as its low prices, the move signals a strategic shift in how it thinks about time, labor and the in-store experience.
Why Costco waited to chase Sam’s Club on mobile checkout
For years, Sam’s Club turned its Scan & Go feature into a calling card, while Costco stuck with clipboards, receipt markers and a limited self-checkout footprint. That caution reflected a culture that prizes operational simplicity and tight control over shrink, especially in cavernous warehouses where carts can hold thousands of dollars in merchandise. Costco’s leadership has repeatedly framed technology as a tool to support its model rather than a way to reinvent it, which helps explain why the company is only now moving aggressively into phone-based checkout after testing other tweaks like expanded self-checkout lanes and more efficient front-end staffing.
The pressure to respond has grown as members compare experiences across clubs and big-box chains that already lean on mobile payments. Reports detailing Costco Is Finally describe how the company is now explicitly targeting those bottlenecks with a “scan-and-go” system similar to what Sam’s Club has offered. That framing underscores how the new tools are less about chasing novelty and more about defending Costco’s core promise of a smoother, more efficient purchasing experience for members who already expect speed from curbside pickup, drive-thru lanes and tap-to-pay everywhere else they shop.
How the Scan & Pay pilot actually works in the aisles
The heart of Costco’s experiment is a feature often described as Scan & Pay, which lives inside the existing Costco app and turns a smartphone into a rolling checkout station. Members open the app, point their camera at each barcode as they place items in the cart, and build a running tally that they can pay for directly on their phone. Once the transaction is complete, the app generates a digital proof of purchase that staff can verify at the exit, replacing the traditional conveyor belt routine with a quick scan of a code and a visual check of the cart.
Details from the company’s technology rollout show that this How the Scan, approach is being tested in 27 stores, including locations in an East Coast mid-value segment where Costco is eager to sharpen its competitive edge. Separate reporting on the Scan & Pay test explains that Costco is using QR codes at the exit so employees can quickly confirm that the digital receipt matches the cart. That design keeps the familiar “show your receipt” ritual while shifting the heavy lifting of item-level scanning to the shopper’s phone, which is exactly where Sam’s Club and other retailers have found efficiency gains.
Arizona’s pre-scan lanes show a second track for faster exits
Costco is not betting everything on phones, and its Arizona test shows a parallel track for members who prefer a more guided experience. In that pilot, the company is using a pre-scan system that lets staff or members scan items before they reach the main checkout, effectively front-loading the work so payment becomes a quick final step. The goal is to reduce the time each cart spends at the register, which in turn shortens lines for everyone, including shoppers who never touch the app.
According to reporting on Arizona, Costco is testing this new pre-scan checkout system specifically to reduce customer wait times, and the Costco CEO has tied the effort directly to member feedback about congestion at the front end. By layering pre-scan lanes on top of traditional registers and self-checkout, the company can experiment with different mixes of labor and technology without forcing every shopper into a single digital funnel. That flexibility matters in a warehouse environment where some members are buying a handful of items while others are loading pallets for small businesses.
What Costco’s Scan & Go means for members on the ground
For members, the most obvious change is the ability to skip the standard checkout line entirely when using the new Scan & Go feature in the app. Reports on the rollout explain that Scan & Go requires customers to scan items as they go using the Costco app on their phone, then pay in the app and present a code at the exit once the purchase is complete. That flow eliminates the need to unload and reload carts, which is especially valuable for bulky items like televisions, patio sets or cases of bottled water that are awkward to lift onto a belt.
Early coverage of What Is Costco Scan, Go Checkout notes that Costco is trying to improve the checkout experience by testing scan-and-go technology and that some members have already responded with comments like “It’s about time.” A separate report on What Is Costco Scan, Go Checkout reinforces that sentiment, describing how shoppers see the feature as overdue given how long Sam’s Club has offered a similar tool. For frequent Costco visitors who plan big stock-up trips, the ability to track spending in real time on the phone, adjust on the fly and then walk straight to the exit could meaningfully change how they navigate the warehouse.
The strategic stakes as Costco leans into its app
Behind the scenes, Costco’s embrace of scan-and-go and pre-scan systems is also a bet on its digital ecosystem. The company has been steadily nudging members toward its app and website, where they can manage memberships, check local inventory and order items that never appear on the sales floor. By embedding Scan & Pay and related tools into the same digital hub, Costco is turning the app into a default companion for in-store shopping rather than a separate e-commerce channel. That shift gives the retailer more data on how members move through the warehouse and which categories they prioritize, information that can feed into merchandising and staffing decisions.
The official Costco site already highlights the app as a central touchpoint for membership and shopping, and the new checkout features deepen that relationship by making the phone essential to the fastest experience in the building. At the same time, coverage of Costco Is Finally and the broader Scan & Pay tests makes clear that the company is still treating these tools as pilots rather than permanent fixtures. That cautious framing suggests Costco wants to capture the benefits of faster checkout and richer data without undermining the high-touch, in-person feel that has long set its warehouses apart from more automated rivals.
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Alex is the strategic mind behind The Daily Overview, guiding its mission to uncover the forces shaping modern wealth. With a background in market analysis and a track record of building digital-first businesses, he leads the publication with a focus on clarity, depth, and forward-looking insight. Alex oversees editorial direction, growth strategy, and the development of new content verticals that help readers identify opportunity in an ever-evolving financial landscape. His leadership emphasizes disciplined thinking, high standards, and a commitment to making sophisticated financial ideas accessible to a broad audience.
