Afterpay Canada Review Rating: 4.0/5
The costs of using credit cards can’t be overemphasized. Afterpay, one of Canada’s top buy-now-pay-later services, offers an alternative solution to credit cards.
With no credit check required and no monthly fees or interest, Afterpay’s easy installment plans allow you to pay for your purchases later.
But is Afterpay the right choice for you? What are Afterpay alternatives? How do you determine the perfect BNPL app in Canada?
This comprehensive Afterpay review covers everything you need to know to make an informed decision.
Overview of Afterpay Canada Reviews
The following are the key features of Afterpay Canada to ease your understanding of this review.
| Legal name | Afterpay |
| Year founded | 2014 |
| Headquarters | Sydney, Australia |
| # of supported countries | 8 |
| # of partner stores | 85,000+ |
| # of active users | 19+ million |
| Interest on loans | N/A |
| Late payment penalties | Up to 25% of the original loan |
| Payments method | You will pay 25% of your order value and then pay the remaining 75% in installments |
| Repayment options | Mastercard, AMEX, domestic VISA (excluding Interac e-Transfer and international-issued cards) |
What is Afterpay Canada?
Afterpay is a payment service that allows customers to purchase products online and pay them in installments.ย
The company was founded in 2014 and is headquartered in Sydney, Australia. Since its inception, Afterpay has become one of the popular buy-now-pay-later services.
Afterpay is available at 85,000+ stores in the United States, Australia, the United Kingdom, Canada, France and other countries.
No interest or fees are charged to you for using Afterpay. More than 19 million people worldwide have used the service, with a majority being in the Millennial and Gen Z demographics.
Update: In 2022, Afterpay was acquired by the world largest world asset manager, Black Rock.
Is Afterpay Available in Canada?
The short answer is YES. Afterpay expanded to Canada in 2020 following its successful launch in Australia, the US, and UK.
In Canada, Afterpay is accepted in several stores especially in the fashion, beauty, and clothing sectors.
You can use Afterpay to make in-store and online purchases with your credit card. Keep reading to learn how to use Afterpay in Canada.
How Does Afterpay Canada Work?
Afterpay goal is to allow everyone to enjoy financial freedom, regardless of their credit history.
So how does Afterpay work? Here’s how it works for shoppers: When you purchase in a store or online, you’ll have to make an initial deposit of 25% of the total cost upfront.
The remaining balance will be divided into three equal installments, which you’ll need to pay every two weeks to avoid late fees.
Afterpay will send you reminders to help you make your payments on time.
If you miss a payment, you might have to pay a one-time fee (up to 25% of your original order). And if you still don’t pay the fee, you may be prevented from using Afterpay or face collection actions.
Afterpay Canada Stores
Afterpay Canada payment plans allow you to make purchases from certain stores and pay for them later without incurring any interest or fees.
Afterpay partner stores in Canada span different categories, including fashion, jewellery, health and beauty, and more.
Some of the top brands that offer Afterpay as a payment option in Canada include:
- Bed Bath & Beyond
- Nixon
- Stylefinity
- Canada Mats
- Luxquisite
- Pandora
- Davanas
- Isiro Canada
- Boohoo
- Underground Clothing
- Skre Canada
- RYU
- Kyodan
- Fit Affinity
There are several other Canadian stores that accept Afterpay as a payment option, both online and in-store.
Is Afterpay Safe in Canada?
Judging by their high rating on Trustpilot, Google and App Store, it’s obvious that Afterpay is safe.
Your information with After is protected and shared with only partner merchants for processing your loans.
Afterpay’s over 63,0000 partners and large customer base further demonstrate its safety and legitimacy.
In addition, Afterpay holds a PCI DSS (Level 1) license, indicating that it follows industry standards for protecting customers’ personal information.
What Happens When I Don’t Pay Afterpay Loans on Time?
As mentioned earlier, there are no costs attached to using Afterpay for making payments.
However, when you miss a payment without rescheduling, Afterpay will charge you $8 with about 25% of your previous order value.
In addition, your account may be suspended until you have paid off your outstanding debts.
Does Afterpay Canada Affect My Credit Scores?
When you create an account with Afterpay, they will perform a soft credit check, which will not impact your credit score. The second credit check will determine your credit limit.
As a new user, you will be given a maximum spending limit of $600. As you keep making purchases and maintaining a good repayment history, you may be able to get a spending limit of up to $2000.
You should note that Afterpay will not report your payment information to credit bureaus unless you fail to make a payment.
But since the app doesn’t report your repayment to credit bureaus, paying off your loan on time would not improve your credit score.
Afterpay Fees in Canada
Using Afterpay in Canada is completely free for shoppers. The company only charges its partner merchants fees for connecting them with shoppers.
If you make your payments on time, you will not incur any extra charges. If you believe you may miss a payment, you can adjust the payment date to avoid late payment penalties.
Afterpay charges up to 25% of a loan as late payment fees. And if you miss a payment, Afterpay will prevent you from accessing its loans until the missed payment is resolved.
Pros and Cons of Afterpay in Canada
Like other buy-now-pay-later apps out there, Afterpay has its pros and cons. Let’s look at the top pros and cons of Afterpay below:
Pros
- No fees: There are no monthly fees, or purchase fees when shopping with Afterpay.
- No interest: Afterpay does not charge interest on its loans.
- Multiple stores: With over 85,000 partners, Afterpay offers access to multiple stores.
- Flexible installment payments: You can pay more or less than the full installment amount without penalty.
Cons
- Late payment fees: Afterpay charges up to 25% of a loan as late payment fees.
- First installment required: You must make the first payment (25%) to get your order approved.
- Spending limit: The starting spending limit ($600) may be insufficient for you.
- Does not improve credit score: Afterpay does not report to credit bureaus, so your loan payment will not improve your credit score.
My Afterpay Canada Review Rating
I rate Afterpay Canada 4.0 out of 5 stars based on the above review, comparative analysis and overall rating of the following features.
With this, my Afterpay Canada Review is positive and recommendable to those looking for a low-cost buy now, pay later app in Canada.
How to Open an Afterpay Account in Canada
First things first. Using Afterpay in Canada requires you to meet the following criteria:
- Reach the maturity age level of your province (18 and above)
- Possess a valid and active debit or credit card
- Have a Canadian phone number or email
- Have a Canadian delivery address
- Meet the criteria to enter a legally binding agreement
- Have sufficient funds to pay 25% of your purchases upfront
When the above is settled, signing up for Afterpay is an easy walk. To sign up for Afterpay in Canada, take the following steps:
- Visit App Store or Google Play Store to download the Afterpay app
- After downloading the app, create an account by providing all the necessary information
- Next, sign in to the app and add your debit or credit card
- Activate your Afterpay virtual card
- Opt-in to receive SMS notifications (optional)
In addition, the Afterpay mobile app will make it easy to review your upcoming payments, receive updates and notifications and monitor your account limits.
Afterpay Canada vs Klarna Canada
Asides from Afterpay Canada, there are other BNPL company alternatives in Canada. One of the leading BNPL companies in Canada is Klarna.
Klarna is a financial technology company well-known for providing pay-after-delivery options to customers in Canada and 45 other countries.
Like Afterpay, Klarna does not charge interest or fees on its pay-after-delivery services. However, they do have late payment fees.
Klarna has become popular among shoppers, with more than 150 million people using their services due to their exclusive deals and comprehensive pay-after-delivery options.
Here is a more descriptive difference between Klarna and Afterpay:
| Category | Afterpay | Klarna |
| Partner stores | 85,000+ย | 500,000+ย |
| Interest on loans | N/A | N/A |
| Active users | 19+ million | 150 million |
| Late payment penalties | Applicable (if payment was not rescheduled by the consumer) | None |
| Payments method | You will pay 25% of your order value and then pay the remaining 75% in installments | You will pay 25% of your order value and then pay the remaining 75% in installments |
| Countries covered | 8 | 45 |
| Repayment options | Mastercard, AMEX, domestic VISA (excluding Interac e-Transfer and international-issued cards) | All major credit and debit cards (excluding AMEX and prepaid cards) |
From the above table, the key difference between both companies lies in their repayment plan, financing options and late payment penalties.
One obvious thing to note is that Klarna is more low-cost and flexible than Afterpay. However, you can’t go wrong with any of the two that suit your situation.
Learn more:
Choosing the Best Pay-After-Delivery Service in Canada
With the plethora of BNPL services in Canada, selecting the best can be tricky.
However, the most important factor you need to consider before making a decision is yourself.
Since the BNPL apps differ in features, you want to consider the following factors when making a decision:
- Spending limit:
- Fees and interest:
- Number of partners
- Payment options
Based on the above factors, you may find Afterpay suitable or unsuitable for your situation.
Verdict on Afterpay Canada Reviews
You have now learned everything that Afterpay entails in Canada. Is it the perfect option for you? Now you can decide.
If you are a responsible spender and want an interest-free loan for everyday or unexpected expenses, then Afterpay may be a good option.
However, if you want to earn rewards on your purchases and are willing to pay the costs, you may consider using a cashback credit card instead.
Remember that using Afterpay will not improve your credit score, unlike a credit card. And you’re more likely to go beyond your budget with BNPL apps due to their easy access. The choice is yours to make.
FAQs on Afterpay Canada
Does Afterpay charge interest?
Afterpay does not charge any interest or subscription fees. When using Afterpay, you will only pay back the amount you borrowed for your purchases without any additional charges.
Is Afterpay a Canadian company?
Afterpay was founded in Sydney, Australia, where its headquarters remain today. However, the company currently offers its services in various countries worldwide, including Canada, the UK, Europe, New Zealand, the US, and others.
How trustworthy is Afterpay?
There are many positive reviews about Afterpay on trustworthy rating platforms like Trustpilot.
Additionally, Afterpay has implemented various security measures, including fraud liability protection, to safeguard its users.
Does everyone get approved with Afterpay?
Afterpay does not approve all orders. They consider certain factors like the number of active purchases and your transaction history with them.
Why is Afterpay declining my first order?
Afterpay’s website states that if you are a new shopper using their service for the first time, only your first order will be approved within the first 24 hours. This is to help maintain their service as free for all shoppers.
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