• Interest Rate: None
  • Credit Check: No
  • Number of Installments: 4
  • Term: 6 weeks
  • Stores in Canada: 190

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Afterpay Canada Review: Pros and Cons in 2023

You want to buy that item so badly, but don’t have the cash? Afterpay might be the solution for you.

Read our Afterpay Canada review to learn about all the pros and cons and unique features that make it stand out.

Let’s dig in!

Afterpay Canada Review: Pros and Cons in 2023

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  • Interest Rate: None
  • Credit Check: No
  • Number of Installments: 4
  • Term: 6 weeks
  • Stores in Canada: 190

Best For

Best For No Late Payment Fee


  • Loans with zero interest
  • No credit history checks
  • Installments can be rescheduled
  • Online and in-store options
  • Late payments don’t get reported to credit bureaus
  • Hardship Policy


  • Can’t be used to improve credit scores
  • Lower spending limits for new users
  • Limited retailer availability

What Is Afterpay?

Afterpay is a buy-now-pay-later business model that makes online shopping easier. 

Unlike enrolling for a credit card, Afterpay doesn’t perform a credit score check on its customers. Instead, it is a completely free option for buyers, as long as they pay their installment rates on time.

Founded in 2014, the Afterpay headquarters are based in Sydney, while it has more than 14 million consumers worldwide and more than 85 thousand business partners. It is spread in the States and New Zealand and has been available in Canada since 2020. In UK and Europe, Afterpay services are recognized under the name Clearpay.

How Does Afterpay Work?

Afterpay strives for financial freedom for all, regardless of their credit history and current position. Their services are free for everyone, without any additional interest rates or fees based on transaction amount (except when you use Afterpay for business).

Here’s the basic principle for buyers.

Every customer initially pays 25% of the initial purchase value when purchasing in-store/checking out of online stores. 

The rest of the Afterpay payments are split into 3 equal installments. Each installment needs to be paid within 2 weeks to avoid running late. However, you may change the installment date before it’s due or overdue.  

The Afterpay news and notification system will send notifications constantly to ensure you don’t miss the date. However, if you still don’t make a payment, you’ll need to pay a one-time fee (up to 25% of your initial order).

Your account will be paused to prevent further expenses if you don’t pay your installment, even after covering the late payment fee.

How Does Afterpay Make Money?  

Afterpay is a legit business running across the globe, with more than 1300 employees. The company’s revenue is generated mainly through charging a fee on transactions to the merchants that use their payment processing system.

Who Is It Best For?

Since Afterpay doesn’t do credit history checks, nor does it report late payments to credit bureaus, it is the best option if you:

  • Need financing for a short period of time
  • Need a financing option with no interest rate
  • Are prepared to pay your installments on time
  • Have a bad credit history score.

Considering that merchants pay for the Afterpay services, implementing them in your sales strategy requires closer consideration.

Afterpay Features

With Afterpay, your options are clear since the company only has one main feature: payments in 4 installments that need to be paid off over a 6-week period. So, if you shop now, you automatically pay 25% of your sum. Then, you pay the rest of the 3 equal installments, due every two weeks. You can choose from two ways to repay loans.

Automatic Loan Repayments

All you need to do is just select one of the payment methods available on Afterpay, and your automatic payments are ready to go. The system will automatically calculate the remaining installments After making your first payment, the system automatically calculates the further installments.

Manual Loan Repayments

Repaying your installment can also be done earlier. Just log into the Afterpay app and go to the “Pay Now” section. You can instantly repay your full loan amount, boosting your spending limit and loyalty status.

Payment Methods

Afterpay Canada accepts the following payment options:

  • Domestic-issued Visa
  • Domestic-issued Mastercard
  • AMEX debit and credit cards

Interac cards and overseas-issued cards are unavailable. Also, keep in mind that using certain cashback credit cards may not earn you cashback points at some retailers.

You Might Be Interested: Best Cashback Credit Cards in Canada

Spending Limit

To compensate for the lack of credit history checks, Afterpay has a spending limit. Here are some factors influencing your spending limit and the number of active orders you can have:

  • Order frequency
  • Payment source
  • Payments made within deadline
  • Frequency of punctual payments
  • Frequency of late payments
  • How late is a payment made
  • Time since first order

If you’re wondering how to increase your Afterpay spending limit, here are a few extra tips:

  • Don’t risk with late payments.

Even if being late doesn’t really affect your credit history, the Afterpay system keeps track of your interactions. This means that you’ll have a lower spending limit if you fall behind on your payments often.

  • Check your account.

Before doing any purchases through Afterpay, always know how much money you have on your account. This will help to avoid declined purchases due to insufficient funds, which can also negatively influence your chances to get a limit increase. 

  • Become a loyal member 

As you purchase more using their system, Afterpay will allow you a limit increase. New Afterpay users are limited to a lower spending amount than those who have been loyal and responsible for a longer period. 

Find Out More: How To Improve Your Credit Score?

Hardship Policy 

The Hardship Policy provided by Afterpay may help customers who are facing financial problems or unexpected difficulties preventing them to pay loans on time.

In cases like unemployment, natural disasters, or domestic violence, contact someone from Afterpay. They will offer you a different payment arrangement tailored to your specific situation.

Return Policy 

For full refunds processed by a merchant for a returned order, even if you haven’t completed your payment plan, all further payments will be cancelled. The paid instalments will be refunded to the same card used for paying. 

If you’ve returned your goods and still get instalments, this is because your cancelation and refund hasn’t been accepted by the merchant yet. Once it is settled, you’ll get refunded, starting from the fourth payment backwards.

Shipping costs are never part of the refund. You just get back the sum you paid for the goods. 

Partial refunds are a bit more complicated, and for further clarification, check here. 

Afterpay App

The Afterpay App is a free and available for Windows, Mac, iPhone and Android devices. It allows users to gain deeper insights and control their purchases and credit histories more efficiently. 

Costs and Fees

Afterpay doesn’t charge fees for using their services. What’s more, rescheduling your payment is completely free. 

But what happens if you don’t pay your instalments at all? Luckily, Afterpay Canada doesn’t impose a default charge. Instead, your account will be paused and you’ll be unable to purchase anything through Afterpay. To reactivate your account, you need to pay the amount you owe. 

Eligibility and Sign-Up Process

Afterpay Canada has certain eligibility criteria you must meet to open an account:

  • Reach maturity in your province/territory (18+ or 19+, respectively)
  • Have a valid email address and/ or Canadian mobile phone number
  • Have an active credit/debit card
  • Have enough funds to cover the initial payment (25% of your overall order price)
  • Have a valid delivery address within Canada
  • Be capable to enter a legally-binding agreement

Signing up for an Afterpay account is a piece of cake, especially since the company doesn’t do credit background checks. 

To create your account, visit Afterpay.com or download the Afterpay app. Once you’ve set up your account, you’ll be able to review your upcoming payments, receive news and notifications, and monitor your account limit.

Customer Support

Customers can contact Afterpay in Canada by choosing one of the following options:

The request section contains a few different sub-sections, each regarding a specific issue: lowering or raising limits, refunds, account deactivation etc.

Afterpay User Reviews

Afterpay users generally give their approval of the popular buy-now-pay later service. The current rank on Trustpilot is 4.9, with 69,381 five-star reviews, which proves its excellency.

On the Google Play Store Store, the Afterpay App is ranked 4.7 out of a maximum of 5. There are more than 139,000 positive reviews on the interface and simplicity and more than 5 million downloads.  

Want To Consider Other Options?

Since eCommerce and global sales have taken the world by storm, the BNPL services are blooming as well. Here are some other options with similar features available in Canada.

Service APR Installments Terms Fees
Affirm 0% – 30% 4 Every 2 weeks None
Klarna 0% 4 Every 2 weeks $7 late fee
Afterpay 0% 4 Every 2 weeks Maximum 25% of initial payment late fee
Sezzle 0% 4 Every 2 weeks $0 late fee

$5 rescheduling fee

$10 account reactivation

Splitit 0% 4 3-24 months $0

Klarna is the most widespread service of the above-mentioned, with more than 90 million users around the world in June,2021. Splitit is also gaining popularity thanks to the wider installment options.

Wrapping Up

Afterpay is a leading buy now, pay later solution, incorporated by more than 75 thousand merchants worldwide. 

If you’re up for an easy payment solution, this service is one of the best on the market. Especially since Afterpay doesn’t perform credit checks and doesn’t charge any fees for its services. You can start off in a few minutes, and the best part is, your late payments won’t affect your credit record.

Happy spending!


How Trustworthy is Afterpay?

With excellent reviews, especially on Trustpilot, Afterpay Canada reviews state it’s one of the leaders in the industry. It also integrates fraud liability protection within privacy policy agreements with users. 

What is the Downside of Afterpay?

According to our unbiased Afterpay Canada review, not having a wider range of products, loans and installment options are some of the downsides users can expect.

Does BestBuy Use Afterpay?

As of 2022, BestBuy no longer supports Afterpay. Instead, customers can finance their purchases through BestBuy credit cards, or lease-to-own plans.

Does Afterpay Charge Interest?

One of the main selling points of Afterpay is that they do not charge any interest rate, nor subscription fees for their services. 


With an early start in journalism and years of work as a technical translator, Marija felt it was natural to blend the two. Passionate about news and research, she enjoys sifting through the data, researching new currents and the constant changes in our technologically and financially driven lives, as well as presenting the stats and facts to the readers so you don’t have to dig deep on your own.