Buy now, pay later for Canadian merchants: how it works and what it costs you.

The short answer

• The provider lends, not you. Flexiti and Afterpay both say they carry the risk. Flexiti carries "the credit and the collections".
• You get paid early. Flexiti says it pays partners in full within two business days. Afterpay says you get paid within days.
• The fee is the provider's to set. Flexiti, Affirm and Afterpay do not publish Canadian merchant fees. Ask for a written quote.
• It works in store and online. Flexiti and Afterpay say in-store use needs no POS integration. Online, they connect through plugins or an API.
• Your card processing stays. BNPL is one more way to pay at checkout. It does not replace your merchant account.

How a BNPL sale works

The customer picks a plan at checkout. From there, the provider handles the loan.

1. The customer chooses a BNPL plan at your checkout or counter.
2. The provider checks the customer and approves or declines.
3. You complete the sale and hand over the goods.
4. The provider pays you the sale amount, less its fee.
5. The customer repays the provider on the plan's schedule.

FCAC, the federal consumer agency, describes two common plan types. One splits the balance into equal payments. The other defers the whole balance to a set date. FCAC says the provider may run a credit check. Customers may repay by pre-authorized debit from a bank account or by credit card. See pre-authorized debit.

What it costs you

You pay the provider a fee on each BNPL sale. The provider sets it, and it is not part of your card processing fees. None of the three providers we checked publish their Canadian merchant rates. Affirm's Canadian page says shoppers see "no hidden fees", but it does not list what merchants pay.

Ask each provider for these in writing:

Card fees work differently. See our card processing fees guide to compare.

Online and in store

In store. Flexiti says in-store financing needs "no POS integration". Afterpay says it runs on the Visa network in stores, with no POS integration. Ask each provider how staff start a plan at the counter, and test it before launch.

Online. Flexiti connects through its API or ready-made plugins for major e-commerce platforms. Afterpay names Shopify, WooCommerce and Wix. Affirm's Canadian sign-up lists Shopify, WooCommerce and Magento, plus in-store options.

Card-based plans. Visa Installments is offered by card issuers, not a separate lender. Visa Canada says eligible cardholders can split a qualifying credit card purchase into equal payments. This happens at checkout at participating merchants or later through their bank. Visa says there is no new credit check, and the full amount uses the card's existing limit. Visa notes that availability depends on issuers, acquirers and merchants taking part. Visa's page does not describe merchant fees, so ask your acquirer.

Who BNPL suits

BNPL fits sales where the price makes a customer pause. Flexiti says its approval rates are "built for big-ticket retail". Affirm's Canadian sign-up lists industries such as home, home improvement, jewellery, education, elective medical and auto.

Risk, returns and your customer

Credit risk. Flexiti says it carries the credit and the collections, while you keep inventory risk. Afterpay says it takes on the risk, "including chargebacks and fraud". Read your agreement for the exact terms. See chargeback.

Returns. Affirm Canada's merchant help says each day's settlement is captures minus refunds. A refund reduces your next payout. How the customer's plan changes after a return is set by the provider's terms.

Your customer's side. FCAC says BNPL plans can carry administration fees and missed-payment fees. Interest can rise sharply after a missed payment. Its retail card example goes "from 0% to 35%". Affirm Canada lists rates from 0% to 31.99% APR, subject to provincial limits.

Québec. The OPC says that when BNPL involves a credit contract, the law requires the company to give the consumer details on payments, deadlines, terms and interest. For 0% offers, the OPC says the rate after the free period must be stated clearly. The provider issues the contract. Check with your lawyer about what your staff and ads may say.

Comparing BNPL providers in Canada

Each cell comes from that provider's own Canadian page, read 8 October 2026. "Not stated" means we did not find it there.

PayBright is now Affirm in Canada. PayBright's own site says its customer portal closed in the move to "a unified Affirm experience". If you offered PayBright before, talk to Affirm about your setup.

Where CleverPays fits

The BNPL provider approves your customer, sets your fee and pays you for the sale. The card issuer runs any card-based plan. Card networks such as Visa and Mastercard set card rules. You choose which options to offer and how your staff present them.

We can help you choose a BNPL provider that fits your products and sale size. We can help you add it to your checkout or counter, and keep your card processing alongside it. We can test a sale, a refund and the first payout with you. We can review your card statement at the same time. Approval and pricing are set by the provider, not by us. We answer in English and French.

Common questions