Emerging Disruption: Buy Now Pay Later in Canada

  • Global Risk Institute
Close-up of a woman sitting with his friend in cafe holding credit card and mobile phone for shopping online

Executive Summary

Buy now pay later (BNPL) is disrupting the unsecured lending market segment around the world. Fintech BNPL firms attract consumers and many merchants by providing consumers with extra purchasing power and a more engaging journey. Traditional lenders must effectively establish BNPL or similar capabilities to defend their market share and customer base.

This report examines the potential of BNPL from a Canadian perspective. We introduce the current state of BNPL in Canada and the potential evolution pattern in the future. In addition, various risks associated with the BNPL disruption are discussed to help financial sector leaders better assess opportunities in the market.