Dive Brief:

• Costco announced last week that members could access a digital membership card via the retailer's app by creating an account on Costco.com, according to a company Instagram post.

• Customers can use the app when entering the warehouse and checking out, according to the company's website. A customer service rep for the company noted in Instagram replies that the app is only available in the U.S. and Canada and is not set up for Apple Wallet.

• Some customers questioned whether the digital card would work at Costco gas stations, but a customer service representative for the company said in the Instagram comment replies that it did not have information on whether the gas stations would accept the digital card.

Dive Insight:

The announcement signals the latest move in Costco's efforts to modernize its payments capabilities. The company's announcement of a digital membership card comes after the retailer rolled out Apple Pay last August and EMV-equipped contactless payment technology at 750 stores last year. 

The news also comes as the company has had positive developments over the past year or so, barring CEO Jim Sinegal's departure in 2018. The company reported a 7.4% year-over-year sales increase, a 90.7% membership renewal rate and a 5.3% membership fee revenue increase to $776 million.

This rollout of digital membership cards might enhance the company's reputation among its existing members, who reported last year of having a better customer experience at the retailer compared to others like Kohl's, Lowe's and Amazon according to the customer insights firm ForeSee. While Costco users seem to be satisfied, the comments in its social media post have suggested that the retailer needs to work out the digital membership card's usage for gas stations and integrate more than one user onto the digital membership.