Finance, Personal

Afterpay Canada Review For 2022: Key Features, Fees & Comparison

We sometimes find ourselves not having a budget that can accommodate all that we wish to buy at once. 

There might even be times that we’ll have to drop off some items from our shopping cart just so we don’t overshoot our budget. 

This is exactly one of the reasons why many Canadians use Buy Now, Pay Later services. 

Afterpay is one of the best Buy Now, Pay Later service providers in Canada that provides quick loans to purchase products and pay back with zero interest.

In this article, I will take you on a tour by doing an Afterpay Canada review. 

You will also get to understand how Afterpay works in Canada and how you can get started using the service as soon as possible.

If all this sounds interesting to you, read on!

What is Afterpay?

As the name implies, Afterpay is simply a Buy Now, Pay Later (BNPL) service that makes it possible for you to buy whatever you want on credit and pay it later in installments. 

Afterpay was established in 2014 and its headquarters is located in Sydney, Australia. It was launched in Canada in 2020 and it has since gained a large customer base. 

Besides Canada, Afterpay also has branches in the UK, Europe, New Zealand, the US and some other nations. 

Part of the reason Canadians like Afterpay is that it never performs any credit check when signing up.

With so many other unique features, it’s obvious to see why Afterpay is so popular in Canada. 

But is it the best for you? Let’s find out. 

How Does Afterpay Canada Work?

It works in a very simple way. Afterpay Canada lets you buy products on the go while allowing you to pay later in installments. 

Just like all other Buy Now, Pay Later services, Afterpay Canada gives you the choice to break up your expensive purchases into “affordable” chunks. 

One good thing about Afterpay is that it does not charge additional transaction fees or interest rates on the credit given to you

This simply means that you get to pay back exactly how much you owe with no hidden fees.

In order to enjoy the Afterpay services in Canada, you need to sign up on the Afterpay app and shop at a supported store.

You will also need to pay 25% of an item’s full price at the point of sale while the remaining 75% will be paid later in installments. 

As long as you have a valid credit or debit card activated on your Afterpay app, all your installment payments will be retrieved automatically every 2 weeks.

Interestingly, you are allowed to pay off your debt at any time even before the 2 weeks due date.

Afterpay Canada does a good job of always reminding its users about the due date of their loans (installment payments).

If you ignore all the notifications and fail to pay up at the due time, your account will be “paused” from making further expenses on credit.

Which Stores in Canada Support Afterpay? 

Most of the popular stores in Canada support Afterpay as a payment option. 

Below is a short list of some Canadian stores that currently accept Afterpay:

  • Micro Code
  • Posh Baby & Kids
  • MSR
  • Newchic
  • NARS
  • Davanas
  • Platypus
  • Skre Canada
  • RYU
  • Pandora
  • Bather
  • Isiro Canada
  • Kyodan
  • Stylefinity
  • Fit Affinity
  • Saxx
  • Bohoo
  • PUMA
  • TNT
  • Nixon
  • Hunter
  • Canada Mats CA
  • Lush
  • NHV Natural Pet Products CA
  • Globo Shoes
  • Underground Clothing
  • Anian MFG
  • Luxquisite
  • The Drive Skateshop
  • Bed Bath & Beyond

There are still so many Canadian stores not listed above that support Afterpay as a payment option during checkout. 

Bear in mind that Afterpay is not only available for online shopping but also for in-store purchases as well. 

You can walk into any of Afterpay partner stores and make purchases with the Afterpay app at any time. 

Is Afterpay Safe and Legit?

With more than 63,000 partners and a total of 14.6 million active customers worldwide, Afterpay is obviously safe and legit. 

Afterpay is also recognized as a PCI DSS (Level 1) licensed service provider. This means that the company protects customers’ identities by industry standards. 

Below are the ratings given to Afterpay on some popular websites which shed light on its safety and legitimacy:

  • Google Playstore review – 4.8 out of 5-star rating
  • App Store – 4.9 out of 5-star rating
  • Trustpilot – 4.9 out of 5-star rating

Afterpay Fees in Canada

The best part about Afterpay is that it costs you nothing to use at any location worldwide including Canada. 

You can download the Afterpay app for free and enjoy the services completely free. 

Even when you reschedule an installment (loan) payment, you are not charged a dime. 

What Happens When I Don’t Pay Afterpay Loans on Time?

There is a “penalty” that comes with defaulting on your repayment. 

Yes, Afterpay will charge you $8 as a late fee and also 25% of your last order value. 

Aside from charging you a late fee when you default on repayments, Afterpay will also suspend your account temporarily till your debts are cleared. 

How Does Afterpay Canada Affect My Credit Scores?

When signing up with Afterpay, the company uses an algorithm to run a “soft” credit check on you. 

This process does not affect your credit score unlike a hard credit check.

The soft check by Afterpay only takes a few seconds during the signup process.

Once the check is completed, you will either get approved or disapproved immediately for their “Buy Now, Pay Later” services. 

One thing you should also bear in mind is that Afterpay does not improve your credit score when you pay back your debts on time. 

How to Open an Afterpay Account in Canada

In join Afterpay in Canada, you need to meet the following eligibility criteria:

  • Have a Canadian phone number or valid email address
  • Have a valid and active debit/credit card
  • Be of 18years and above (or the maturity age in your province)
  • Have a Canadian delivery address
  • Be capable and willing to enter a legal-binding agreement
  • Have some funds to pay at least 25% of your purchases

Once you meet the above criteria, you can follow the steps below to sign-up for Afterpay in Canada:

  • Download the Afterpay app from App Store or Google Playstore
  • Create an account by supplying all the required information
  • Log in to the app and add your debit/credit card
  • Activate the Afterpay virtual card
  • Select whether you will like to receive SMS notifications

After setting up your Afterpay app, you can begin your journey into the world of “Buy Now, Pay Later”. 

Pros and Cons of Afterpay Canada

With all that we have discussed above, you may have probably seen some reasons to start using Afterpay Canada. 

However, this review will not be balanced if I don’t highlight some of the disadvantages as well.

Here are the major pros and cons of using Afterpay in Canada.


  • No transaction fees or hidden charges (except for late payment)
  • Interest-free loans that can be paid back in four bi-weekly installments
  • Multiple retail stores in Canada support Afterpay as a payment option
  • Ability to ask for an extension early when you are unable to pay back on the due date
  • Option to report stolen or lost debit/credit card attached to your Afterpay app


  • Reduction of your spending limits based on past repayment records and other “undisclosed” factors
  • No improvement of your credit score even when you pay back Afterpay loans on time
  • $8 late fee and 25% of your order value is charged as a penalty for defaulting on repayment 

Afterpay Canada vs Klarna Canada 

Active consumers worldwide19 million150 million
Interest on loansN/AN/A
Partner stores63,000+450,000+
Locations (countries covered)845
Installment payments methodInstant payment of 25% of an order value and then the remaining is paid in installmentsFour installment payments
Late payment feesYesNone
Supported repayment optionsMastercard, domestic VISA, AMEX (except international-issued cards and Interac e-Transfer)All major credit and debit cards (except prepaid and AMEX cards)

With over 14 million monthly users worldwide, Klarna is undoubtedly one of the most popular Buy Now, Pay Later (BNPL) services out there. 

From the above comparison, you can see how Klarna compares significantly with Afterpay.

Both companies provide access to some of the popular stores in Canada and they don’t charge interest on BNPL services.

However, the two BNPL service providers differ in some respects. Klarna doesn’t require an initial deposit while Afterpay requires 25% of an initial deposit.

Unlike Afterpay, Klarna doesn’t charge late payment fees. However, defaulting on a loan payment on Klarna can result in you handling a debt collection agency.

Overall, Klarna appears to be more flexible and cost-saving than Afterpay. 

Choosing the Best Buy Now, Pay Later Service in Canada

It is quite obvious that Afterpay Canada is not the only “good” BNPL service available to Canadians today. 

There is Klarna and a bunch of others that many Canadians use. So, how do you pick the perfect one for your situation?

Below I discuss key points to consider before choosing a Buy Now, Pay Later service in Canada.

  • Number of partner stores: The very first thing to consider before choosing a BNPL service is the number of partner stores that accept them. Always ensure that your favourite stores allow the Buy Now, Pay Later service that you are about to opt for. 
  • Fees and Interest rate: While most BNPL companies charge zero transaction fees and interest, some charge late payment fees. Ensure you are comfortable with the figures and terms before opting for any BNPL service. 
  • Credit limit: All the Buy Now, Pay Later (BNPL) companies in Canada do have a maximum loan limit. Go with a BNPL service provider with a credit limit that suits your spending habit. 
  • Supported repayment options: Even though you will be making purchases with a BNPL service, you still need to have ways of paying back the company. It is always good to check for a BNPL company’s supported repayment options before your start using them at all. 

Afterpay Canada Review – Final Thoughts 

Now that you know all about how Afterpay works in Canada, should you use it?

In my opinion, the Afterpay service is fair enough by charging zero interest and allowing you to extend the repayment due date. 

However, I am not comfortable with the late payment fees that Afterpay charges when you default on your loan.

In any case, I will only recommend Afterpay for people that are very sure they would hardly default on their repayments. 

If you don’t have a steady income stream, you may want to shun BNPL service providers or consider companies like Klarna that don’t charge late payment fees.

Is Afterpay for you? Tell me in the comment section the BNPL company you’re going with.

Before leaving, check out our blog section for more related information such as:

FAQs on Afterpay Canada Review

How trustworthy is Afterpay?

Reputable rating platforms like Trustpilot have lots of positive reviews about Afterpay services. 

The company also has integrated fraud liability protection and other forms of security systems to protect its users. 

Does Afterpay charge interest?

No. Afterpay does not charge interest or subscription fees of any sort. 

You always pay back the exact amount that you get as a loan from Afterpay during your purchases. 

Does BestBuy use Afterpay?

Unfortunately, BestBuy no longer accepts Afterpay as a method of payment in 2022. 

You can finance your purchases with BestBuy credit cards, or lease-to-own plans.

Is Afterpay a Canadian company?

Afterpay was originally founded in Sydney, Australia. That’s also the current location of its headquarters.

However, Afterpay services are available across Canada, UK, Europe, New Zealand, the US and some other nations. 

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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