Is Afterpay Available in Canada? How It Works

Afterpay provides a “Buy Now, Pay Later” (BNPL) service, allowing consumers to acquire goods immediately and manage payments over time. This financial tool enables individuals to split the total cost of a purchase into smaller, more manageable installments. This article details Afterpay’s availability and how it operates for consumers in Canada.

Afterpay’s Presence in Canada

Afterpay launched its services in Canada in August 2020. It expanded to Quebec in January 2020, offering support in both English and Canadian French. Consumers can access Afterpay as a payment option through its dedicated mobile application, which also features exclusive deals.

How Afterpay Works for Canadian Shoppers

Afterpay splits eligible purchases into four interest-free payments. The initial payment, 25% of the total, is due at the time of sale. The three subsequent payments are automatically processed every two weeks, typically over a six-week period.

To use Afterpay in Canada, individuals must meet specific eligibility requirements. Users need to be at least 18 years old, or 19 in provinces where that is the age of majority. Applicants must be a resident of Canada with a valid Canadian billing and shipping address. A verifiable email, mobile phone number, and a valid Canadian-issued Visa or Mastercard (debit or credit) are also necessary. Afterpay may conduct a soft credit check for new customers to determine initial spending limits, but this inquiry does not impact one’s credit score.

Shopping with Afterpay in Canada

Once an Afterpay account is established, shoppers can identify participating retailers through the Afterpay app or by looking for the Afterpay logo during online checkout. For online purchases, customers select Afterpay as their payment method, link their payment card, and confirm the installment schedule.

For in-store shopping, Afterpay can be used by setting up a digital Afterpay Card within the app and adding it to their phone’s digital wallet for tap-to-pay. Customers can manage payments and view order history through the Afterpay app or online account. Afterpay facilitates purchases ranging from $50 to $2,000.

Key Considerations for Canadian Users

Afterpay offers interest-free payments if all installments are made on time. If a payment is missed, late fees may apply. These fees are capped at 25% of the original order total or $68 per order, whichever is lower. For orders under $40, a single late fee up to 25% of the order total may be charged. Orders of $40 or more incur an initial $10 late fee, with a potential additional $7 fee if the payment remains outstanding after seven days. Missing payments can also temporarily suspend a user’s ability to make new Afterpay purchases until the outstanding balance is settled.

Afterpay’s payment model does not involve hard credit checks, so using the service does not impact a user’s credit score. On-time payments are not reported to credit bureaus and do not contribute to building a credit history. All transactions are conducted in Canadian Dollars (CAD). For customer support, users can access assistance through the Afterpay app, its website, email, or by phone.