Square, Afterpay integrate BNPL functionality for Canadian customers

With the BNPL model having been widely adopted due to the ecommerce shift during the pandemic, BNPL payments are believed to grow 63.5% in Canada, with Gen Z and millennials being the predominant age groups when it comes to BNPL usage.

Square representatives have stated in their press release that the integration with Afterpay follows their wish on expanding globally, as well as on integrating businesses of all sizes into their ecosystem and providing them with the necessary tools to engage shoppers that are looking for flexible payment methods.

Canadian sellers using Square Online store and Square Online Checkout can now try Afterpay for no extra cost until December 31, 2022. Afterpay can be accessed from the Account & Settings section of the seller’s Square Dashboard, after which they can opt in to receive early access to Afterpay, with an automatic enablement set to roll out to eligible Square ecommerce sellers within the near future. Sellers have the option of enabling or disabling the Afterpay option at any time, directly from the Account & Settings section of the Square Dashboard, and during the promotional period, Afterpay’s transactions will be processed at the sellers’ standard ecommerce rates. Sellers receive their payment in full for each sale (excluding associated transaction fees and applicable taxes), while consumers pay off their purchase over the course of four instalments.

Square past developments

The Square and Afterpay integration has already taken place across the US  and Australia, as well as the UK, where the BNPL provider is known as Clearpay, a partnership that was announced in August 2022. 

In April 2022, Square announced the launch of Square Loans offer in Canada, a programme that provides access to funds to small businesses. Using transaction data, Square Loans brings customised offers to sellers that match the eligibility criteria, while providing a clear and hassle-free application process, with no paperwork being required and the delivery of funds being processed within one  business day. Businesses have one upfront loan that is paid back automatically as a set percentage of daily card sales with Square, meaning that the amount that is paid back is influenced by the sales’ statistics, with more being paid when sales are strong, and less during slower times, the loan fee remaining the same for the seller.