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Affirm, Amazon offer Pay-Over-Time option in Canada

Monday 26 September 2022 12:20 CET | News

US-based Buy Now, Pay Later (BNPL) solution provider Affirm has announced the expansion of their Amazon flexible payment offering to Canada.

 

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.

After selecting Affirm as a payment option at checkout, customers on Amazon.ca will go through a credit check which will have no impact on their credit score. Customers’ payment options will be determined by Affirm’s technology in a matter of seconds and, if approved, eligible customers will have the opportunity of splitting their purchases exceeding USD 50 into monthly payments. Eligible customers will be aware of the number of monthly payments they have to carry out and will also know the period when they will complete the payments. In the event of a late or missed payment, the customer’s total payment amount will remain the same, with no increase or late/hidden fees being applied.

Affirm has announced the expansion of their Amazon flexible payment offering to Canada.

Buy Now, Pay Later market in Canada

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.

Canadian BNPL users tend to fit a discernible profile, most consumers being between the ages of 18 and 34, non-credit cardholders, and belonging to the mass market/mass affluent groups. Some of the key benefits  that drive Canadian consumers towards BNPL usage are:
  • 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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Keywords: BNPL, partnership, payments , online payments, ecommerce, instalment payments
Categories: Payments & Commerce
Companies: Affirm, Amazon
Countries: Canada
This article is part of category

Payments & Commerce

Affirm

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Amazon

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Discover all the Company news on Affirm and other articles related to Affirm in The Paypers News, Reports, and insights on the payments and fintech industry:
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