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BNPL Fuels Record $6 Billion Black Friday Sales in Canada

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  //business-finance.news-articles.net/content/202 .. cord-6-billion-black-friday-sales-in-canada.html
  Published in Business and Finance on Monday, December 1st 2025 at 17:02 GMT by Global News

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How Buy‑Now Pay‑Later Is Reshaping Black Friday Shopping

Black Friday is already Canada’s biggest retail day, but this year it is also the day that most consumers will be tempted to use “buy‑now pay‑later” (BNPL) services to fund their purchases. Global News’ in‑depth look at the trend shows that BNPL has become a cornerstone of holiday shopping, bringing fresh excitement to discount‑driven sales while also raising new concerns about consumer debt, regulation, and the future of credit.

The Rapid Rise of BNPL

BNPL is not a new idea; it has existed under various forms for decades. What has changed is the proliferation of digital‑first platforms that make the experience frictionless. Afterpay and Klarna, both headquartered in Australia, are among the most prominent players in the U.S. and Canada, but the market is expanding. The article cites a 2023 report from the Canada Mortgage and Housing Corporation that shows BNPL usage in Canada grew by more than 70 % year‑over‑year, with over 5 million Canadians signing up.

Unlike traditional credit cards, BNPL often promises no interest, a promise that attracts budget‑conscious shoppers. Consumers typically split a purchase into four installments, paid over six weeks, and if they meet payment deadlines, they avoid the high interest associated with credit cards. This appeal is especially potent during Black Friday when shoppers can combine limited‑time deals with an easy payment plan.

BNPL’s Footprint in Canada

The article highlights how Canadian retailers have partnered with BNPL providers to offer in‑store and online financing. Many merchants, from big‑box chain Costco to boutique online stores like Zappos, allow BNPL as an option at checkout. By offering the “pay later” feature, retailers report higher conversion rates and larger average basket sizes.

Notably, the article links to the Office of the Superintendent of Financial Institutions (OSFI), which issued a statement in 2022 warning that BNPL could contribute to unsustainable debt for young consumers. The OSFI’s concerns were echoed by the Bank of Canada, which highlighted that BNPL was growing faster than the credit‑card sector and that regulators were still catching up.

Black Friday: The Biggest Retail Day

In 2023, Canada’s Black Friday sales exceeded $6 billion, according to a report by the Retail Council of Canada. The day is not only about door‑buster discounts; it’s also a strategic point of entry for retailers to introduce new payment options. The article emphasizes that BNPL providers benefit from this exposure: a single purchase on Black Friday can lock a customer into a payment schedule that keeps them engaged for months.

The article also notes that the Canadian consumer‑credit market is expected to grow by 3 % in 2024, with BNPL expected to account for a sizable share. While BNPL can make high‑price items more approachable, it also means that consumers are often paying for items they might otherwise defer or forego.

The Pros and Cons of BNPL During Black Friday

Pros

1. No Interest, Low Up‑front Cost – BNPL can spread a purchase over time without the penalty of interest, allowing shoppers to pay a fraction of the total immediately.
2. Improved Cash Flow – For consumers who are short on cash, BNPL provides a temporary buffer that can help them stay on budget.
3. Higher Spending – Studies have shown that shoppers who use BNPL tend to spend 10‑15 % more than those who pay cash or with credit cards.

Cons

1. Hidden Fees – Some BNPL services charge late‑payment fees that can quickly erode the “interest‑free” promise.
2. Debt Accumulation – The convenience can lead to multiple overlapping payment plans, contributing to a cycle of debt.
3. Credit Impact – While many BNPL providers claim they do not report to credit bureaus, some do, especially when consumers miss payments.

Consumer Debt Concerns

A key link in the Global News article takes readers to a study by the Canadian Institute for Health Information that shows an increase in self‑reported debt‑related stress in the population. The article discusses how BNPL’s instant gratification can lead to overspending, especially when promotions are bundled with “pay‑later” options.

The article also cites a piece from The Globe and Mail that explains how some consumers have missed payments, leading to higher collection agency activity. This risk is magnified during Black Friday, when the sheer volume of purchases can overwhelm a shopper’s capacity to manage multiple installments.

Regulatory Landscape

Canada’s regulatory approach to BNPL is still evolving. The article links to the Consumer Protection Act amendments that require BNPL providers to provide clear disclosure of fees and terms. The Office of the Superintendent of Financial Institutions has called for stricter oversight, especially regarding “small‑business credit” and “online commerce.” The article notes that the Canadian government is monitoring the sector closely, hoping to protect consumers without stifling innovation.

Tips for Smart BNPL Use During Black Friday

1. Read the Fine Print – Even “no‑interest” plans can have hidden fees if you miss a payment.
2. Track Your Installments – Use a calendar or budgeting app to keep a clear view of when payments are due.
3. Prioritize High‑Value Items – Use BNPL for larger purchases that genuinely need financing; avoid using it for low‑priced impulse buys.
4. Set Up Automatic Reminders – A few days before a payment due date can save you from late fees.
5. Consider Alternative Financing – Traditional credit cards with low interest rates or personal loans may offer better terms for certain purchases.

Looking Ahead

As BNPL continues to gain traction, the Black Friday shopping season will remain a testing ground for new payment models. The Global News piece concludes that while BNPL offers a tempting, convenient alternative to credit cards, it also demands heightened consumer vigilance. With regulatory bodies taking a closer look, the next Black Friday may see more transparent terms and potentially tighter oversight of BNPL providers.

Whether BNPL becomes a lasting fixture in Canada’s retail ecosystem or a short‑lived trend, one thing is clear: the ability to “buy now, pay later” is reshaping how Canadians experience holiday shopping—making the big sale day both more accessible and more complicated than ever before.