Afterpay Canada Review Rating: 4.7
Fintech companies such as Afterpay are improving shoppers’ experience with buy-now-pay-later (BNPL) service.
Like credit cards, buy-now-pay-later (BNPL) apps allow you to make cashless purchases and pay later.
However, most buy-now-pay-later (BNPL) apps have zero monthly fees in addition to zero interest.
Afterpay is one of the best pay after delivery services with competitive offers in the industry. Hence, many Canadians like you are asking, is there Afterpay in Canada? What are Afterpay alternatives in Canada?
This review answers all your questions about Afterpay Canada.
What is Afterpay?
Afterpay is an Australian-based fintech company offering buy-now-pay-later (BNPL) services across Australia, UK, US, New Zealand and Canada.
Founded in 2014, Afterpay has over 1300 employees, over 75,000 partners and over 13 million global customers.
Afterpay aims to promote responsible spending by approving customized spending limits according to individuals’ spending habits.
Furthermore, Afterpay offers no-fee and zero-interest loans with four installment payments on cashless purchases online or in-store.
Continue reading to learn more about Afterpay and why it’s an alternative buy-now-pay-later (BNPL) app for millions of shoppers.
How Does Afterpay Canada Work?
After pay works like other buy-now-pay-later (BNPL) apps in the market. All you need is to create an account and start shopping at your favourite stores using Afterpay as your checkout payment method. The merchant will ship your goods once you check out.
However, you will be required to make the first (25%) out of the four installment payments at the retailer’s point-of-sale. The remaining three payments are due after every two weeks.
That said, the loan is retrieved automatically through your debit or credit card on the due date. But you can pay your debt before the due date without penalty, reducing your chances of late payment fees.
Is Afterpay Available in Canada?
Yes, Afterpay is available in Canada as well as in Australia, UK, US, and New Zealand.
Some of the brands After partners with in Canada includes:
- Canada Mats
- Bed Bath & Beyond
- Stylefinity
- Luxquisite
- Isiro Canada
- Pandora
- Davanas
- Bohoo
- Nixon
- Platypus
- Saxx
However, you need to visit the Afterpay Canada page to access Canadian stores.
Is Afterpay Legit and Safe?
Afterpay is a legit and safe pay after delivery app trusted by over 13 million global customers and over 75,000 partners.
As a PCI DSS Level 1 licensed Service Provider, Afterpay stores and protects your personal information according to the Payment Card Industry Security Standards.
Furthermore, Afterpay has a 4.9 out of 5-star-rating on Trustpilot, 4.9 out of 5-star-rating on App Store and 4.8 out of 5-star rating on Google Playstore.
Pros and Cons of Afterpay Canada
It’s essential to weigh the good and ugly sides of any BNPL app before subscribing to it. Here are the pros and cons of After Canada you need to know:
Pros
- No Interest: Afterpay doesn’t charge interest on its pay after delivery loan. This makes it different from a typical credit card.
- No Fees: Afterpay doesn’t charge upfront fees on its loans when you pay on time.
- Flexible Installment Payment: The Afterpay’s part payment feature allows you to pay more or less than the full instalment amount without penalty. This gives you the flexibility of customizing your debt payment.
- No Credit Checks: Afterpya doesn’t conduct credit checks nor consider your credit score when assessing your application.
Cons
- Late Payment Fees: Afterpay charges fixed late payment fees for defaulting your payment on the due date.
- Instant First Installment: Unlike other BNPL apps, you must make the first payment (25%) out of the four installment payments to get your order approved.
- Spending Limit: While Afterpay aims to promote responsible spending, the starting spending limit may be insufficient for you.
- Doesn’t Improve Credit Score: Like other pay after delivery apps, Afterpay doesn’t report to credit bureaus. Hence your loan payment will not improve your credit score.
How Much Can I Spend With Afterpay?
Afterpay offers a variable spending limit per individual’s spending habits. You can find your estimated spendable amount on your Afterpay dashboard.
However, the amount you can spend with Afterpay depends on the following factors:
1. Due Payments
The more you make fast payments, the more your spending limit increases. Thus, avoiding late payments and insufficient funds in your card will impact how much you can spend with Afterpay.
2. Duration
Afterpay usually allocates a low spending limit to new users. However, the more you spend with Afterpay and meet your due payments, the more likely your spending limit increases.
Which Cards Does Afterpay Accept?
Afterpay accepts Mastercard, domestic Visa, American Express credit and debit cards.
However, Afterpay does accept Interac or international issued cards.
That said, any card you linked with Afterpay will be subjected to the terms and conditions of your card issuer.
Unlike typical credit cards, you can’t earn rewards such as points, cashback or other benefits shopping with Afterpay.
How Can I Pay an Afterpay Loan?
Afterpay has two options for paying loans. The first option is its automatic payment systems that retrieve the loan automatically on the due date.
All you need is to log in to your account and add your card to Afterpay under the “Add a payment method” section.
Subsequently, Afterpay will notify you ahead of any due installment payment so as to deposit sufficient funds on your card.
The second option of paying your loan on Afterpay is using the “PAY NOW” feature on your account. This feature allows you to make early installment payments without penalties. All you need is to enter your card details and make the payment manually.
Click “Store my card” to make the card your preferred payment method or untick the option after making payment.
What if I Miss an Afterpay payment?
Missing an Afterpay payment attracts late payment fees and pausing of your account. Consequently, you can’t further shop with Afterpay until you pay your outstanding loan.
However, Afterpay has a “Hardship Policy” that offers customized solutions for those missing payments due to financial hardship.
Afterpay Canada Review: My 5-Star Rating
Here’s how I arrived at the 4.7/5-star rating of this Afterpay Canada review:
| Feature | Rating |
| Interest Rate | ***** |
| Fees | **** |
| Spending Limit | *** |
| Payment Options | ***** |
| Approval Speed | **** |
| Partner Stores | *** |
- Interest Rate: Like most other pay after delivery services, Afterpay doesn’t charge interest.
- Fees: Afterpay doesn’t charge upfront fees but charges late payment fees.
- Spending Limit: Afterpay has varying spending limits according to each individual’s spending habits and other factors. However, the spending limit may be low for new users.
- Payment Options: Afterpay has automatic and manual payment options. Simplify deposit funds in your card, and Afterpay will automatically deduct the installment payment on the due dates. You can also pay your loan manually before the due dates.
- Approval Speed: Afterpay approves orders with speed. This makes it reliable during emergencies.
- Partner Stores: This pay after delivery app partners with more than 75,000 merchants. Hence, you’re likely to find your favourite stores.
How to Open an Afterpay Canada Account?
All you need is to visit the Afterpay sign-up page and enter your details.
You will be required to enter your personal details, such as your email, address, DOB, phone number, and credit or debit card details.
That said, you can also open an Afterpay account through its mobile app available on Apple Store and Google Playstore.
How to Contact After in Canada?
Afterpay customer service is available to respond to your inquiries from Monday to Friday (09:00-17:00, Central USA time). Call them on 1-833-386-0210.
However, you can also visit the Afterpay contact page and submit your request on:
- Account support
- Payments or hardship support
- Refund/return orders
- Complaint about Afterpay product or services
- Spendable limit
- And more.
Klarna vs. Afterpay: Which to Choose?
Klarna is a popular fintech company offering pay after delivery services in Canada and other 16 countries.
Like Afterpay, Klarna doesn’t charge interest and fees on its pay after delivery services. However, late payment fees apply.
Klarna sets itself apart in the buy-now-pay-later (BNPL) with exclusive deals and complete pay after delivery services, attracting more than 90 million shoppers.
Unlike Afterpay, Klarna doesn’t require you to make the first installment payments before getting approval. Instead, it allows you to make four installments, due every two weeks.
Like Afterpay, you can also pay off your Klarna loan before the due date without any penalty.
That said, the payment structure is the major difference between Klarna and Afterpay.
However, I recommend you read this Klarna Canada review before deciding.
Verdict on Afterpay Canada
Now you know what Afterpay entails and the cost of using it as your pay after delivery service.
So the question is: “Is it worth it?” This is a rhetorical question. But if you ask me, I will say “YES and NO.”
Afterpay is worth it for any responsible spender looking for an interest-free loan on everyday or unexpected expenses.
However, if you are looking for rewards on purchases and are ready to pay the costs, I recommend using one of the best cashback credit cards out there.
Overall, you can’t make the wrong choice with Afterpay Canada. But remember, it will not improve your credit score like a typical credit card.
FAQs on Afterpay Canada
How Many Orders Can I Have With Afterpay?
You can only make 1 order in a day with Afterpay. Making multiple orders in a day is a red flag that attracts disapproval.
However, you can increase your order limit by making fast payments, availing sufficient funds on your card, and using Afterpay for a long period.
Why is My Order With Afterpay Being Declined?
Afterpay approves 90% of orders. However, it uses several factors to approve or disapprove orders. This includes your payment history, length of time with Afterpay, sufficient funds in your card, outstanding loan amount, and the value of orders you want to place.
Also, your order may get declined if you make multiple orders at a time when you’re not eligible to.
On the other hand, your order may be declined due to your merchant terms and conditions.
Can I Pay My Afterpay Loan Less than the Full Installment Amount?
Yes, Afterpay allows you to pay less than the full installment amount due to its “part payment feature.”
All you need is to log in to your Afterpay account and navigate to the “Payment Schedule” section. After that, click the “Make Payment” section and enter the amount you want to pay.
What if I Have Difficulty Paying Afterpay on Time or Facing Financial Hardship?
The Afterpay “Hardship Policy” offers customized solutions to those having difficulty paying their loans on time or facing financial hardship.
Afterpay may stick to your initial installment structure or create a new payment plan based on your current situation. You will discuss all this together.
Regardless of your situation – be it unemployment, natural disaster or domestic violence – the Afterpay “Hardship Policy” will get you back on track.
The first step is to contact Afterpay for a personalized solution. Call Afterpay customer service on 1-833-386-0210 (09:00-17:00 Mon-Fri, Central USA time).
Does Afterpay Affect Your Credit Score in Canada?
Afterpay doesn’t report to any credit bureau. Hence, it doesn’t affect your credit score. This also makes it easy to get approval even if you have a poor credit score.
However, not reporting to a credit bureau means your Afterpay loan payments will not improve your credit score.
Can You Pay Off Afterpay Early?
Absolutely. Afterpay has a “part payment feature” that allows you to pay off your Afterpay loan early, limiting your chances of late payment fees.
All you need is to log in to your Afterpay account and navigate to the “Payment Schedule” section. After that, click the “Make Payment” section and enter the amount you want to pay.
What is the Difference Between Afterpay and a Credit Card?
Reward and payment structure constitute the major difference between Afterpay and a credit card. Afterpay doesn’t offer any reward upon our purchases, while a credit card offers rewards points, cashback, or air miles, etc.
On the other hand, Afterpay offers a loan upon your purchases while a credit card has a pre-authorized credit limit.
Also, Afterpay doesn’t have monthly interest and fees, while most credit cards charge interest and fees.
If you have more questions about this Afterpay Canada review, drop them in the comment section.
