Prospects for Online BNPL in Canada, 2024

Prospects for Online BNPL in Canada, 2024

The global market for BNPL services has grown rapidly over the past five years, spurred on in part by the strong growth in e-commerce during the pandemic years. In 2023, Gross Merchandise Value using BNPL services exceeded $300 bn (USD) worldwide, up from $128.6 bn (USD) in 2019.

In 2023, Canada’s online BNPL expenditure represented 4.1% of global online BNPL expenditure, or $12.3 bn (CAD) in GMV. While Canada was late in the adoption of online BNPL services, growth in GMV since 2019 has outpaced that in all of the more developed jurisdictions.

Almost one third of adult Canadians have used online BNPL services for their e-commerce purchases in the past year, indicating that while online BNPL is gaining traction rapidly in Canada, there is still significant headroom for growth. In 2028, we expect 19.4 m adult Canadians to make use of online BNPL services, with GMV almost quadrupling over the forecast horizon.

Growth in the market is being driven by increasing adoption, higher frequency of use, and higher average order values. This is being stimulated by intense competition, especially between fintech BNPL service providers and traditional credit BNPL providers, with product innovation playing a major role in the battle for both consumers and merchants.

Prospects for Online BNPL in Canada - 2024, provides a deep dive into the Canadian online BNPL market, examining market demographics and segments, key players, industry trends, the supply structure, delivery mechanisms, the competitive environment, regulatory developments, and the implications for both consumers and businesses. The central aim of this report is to provide actionable insights into the current state of the online BNPL market in Canada and the most important factors shaping its future trajectory. Our forecast horizon is the five year period to 2028, with 2023 as the base year.

Drawing on survey research from more than 2,000 Canadian consumers, Prospects for Online BNPL in Canada - 2024 is a critical strategic resource for payment professionals active in the BNPL market, providing in-depth insights and forecasts to facilitate effective strategic planning, competitive positioning and product development in this highly dynamic marketplace.

About the report:

Publication date: June 2024

Number of pages: 70

Charts and tables: 30

List of Companies Mentioned in the Report:

Affirm, Afterpay, Amazon, American Express, Apple, Block, BMO, BRIM Financial , Canadian Tire, Celerant Technology, CIBC, CURO Group Holdings, FCAC, Flexiti, Google, Klarna, MasterCard, MBNA, Miller Thompson LLP, Norton Rose Fullbright, Paybright, PayPal, Questrade, RBC, Scotiabank, Sezzle, Splitit, Stripe, TD Bank, Upgrade, Uplift, Visa, Walmart, Zip

Methodology:

• Online research
• Executive interviews
• Conferences and seminars
• Consumer Research: Findings from our primary market research among 2,000 adult Canadian consumers
• Analysis and insight, based on 30+ years of advising clients in the international payments market