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BNPL: It's a payment method

Buy Now Pay Later, or BNPL for short, is the world’s fastest growing payment method (Worldpay report - PDF), and is being widely adopted in a variety of industries from retail to education to cannabis. According to Research and Markets, BNPL payment in Canada is expected to grow by 63.5 per cent on an annual basis, and reach US$5.95-billion in 2022. With the rise of digital commerce and mobile penetration, BNPL providers are well-positioned versus other payment methods such as debit and credit cards (Juniper BNPL research).


 BNPL is a payment method, not a lifestyle brand

Contrary to the advertising from many other BNPL providers, we see BNPL as a payment method. It’s a choice alongside Visa, Mastercard, PayPal and others at the checkout. And using BNPL at the checkout should have the same or better experience during and post- payment. This means that you shouldn’t be subjected to lifestyle advertising just because of the payment method you used.


BNPL is still relatively unknown

Canadians could benefit from more knowledge of BNPL services, as 38 per cent of these respondents had not heard of BNPL prior to being surveyed. Consumers across all age demographics are using BNPL. Payments Canada research shows younger Canadians (18-34) are significantly more likely to be using BNPL now and in the next 12 months for purchasing in store or online than older Canadians (aged 55+). And Statista show the age group most interested in BNPL are 35-44yrs in Canada. This shows BNPL is poised to grow across several key age groups.


BNPL is a source of funds

BNPL is a source of funds, just like a card issuing bank is a source of funds for your purchase. When you swipe your card at the terminal, you’re using the bank’s funds to pay. The payment is processed from you the consumer, to the store via your bank and the store’s bank. BNPL is no different,– Gratify helps consumer break purchases up into easier to afford installments.

Instant decisioning and low friction is key here and we have one of the fastest and most robust check out processes in the industry.At Gratify, that source of funds is available to consumers in good standing and using sophisticated algorithms and data from four sources: external bureaus, device-level intelligence, the consumer’s spending behaviour, and merchant-level data.

Most importantly, BNPL is restricted to consumers 18yrs+; the same restriction applied to using funds provided by a credit card.


Capitalising on consumer demand for digital payment methods with better cash flow and terms is critical. Offering BNPL can help turn more enquiries into sales, and provide a stop gap for those consumers that choose to buy then budget. As a payment method, BNPL is here to stay and has a long way to grow in Canada. Don’t miss out on the BNPL tidal wave in your business.