The soon to be introduced payment option will bring customers shopping on Amazon.ca flexibility and transparency, the option being announced to become available by the end of October 2022, in both English and French.
The BNPL market in Canada has been growing following the increased ecommerce adoption rate and the economic slowdown caused by the COVID-19 outbreak. A report published by ResearchandMarkets shows that BNPL payments in Canada are expected to have a 48.2% growth on an annual basis, reaching approximately USD 9.2 million in 2022.
The BNPL payment adoption rate is expected to reach a CAGR of 27.5% during 2022-2028. The BNPL Gross Merchandise Value in the country is expected to increase from USD 6.193 million in 2021 to USD 39.480 million by 2028.
The chance of budgeting expenses, as payment streams follow a set amount and time frame, with some BNPL apps having budgeting tools implemented.
Convenience, with the BNPL payment option being embedded into the ecommerce platform, the consumer’s application and approval process takes a few minutes to complete, as opposed to credit card approvals which can take a few days.
Offers the possibility for consumers to afford paying for purchases upfront, especially consumers who would otherwise be unable to fit said purchases into their budget (e.g.: people who do not have access to traditional forms of credit – credit cards, personal lines of credit – or have a lower income).
Some other benefits that have been cited by consumers are interest avoidance, payment deferral, and reduced credit card usage.
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