Buy Now Pay Later Plans

November is Financial Literacy Month and to mark the occasion, this edition of Consumer Edge includes fresh content from the Financial Consumer Agency of Canada (FCAC) to help you manage your debt, as well as an Office of Consumer Affirs (OCA) -funded report on an increasingly popular financing option, buy now, pay later (BNPL). You’ll also find new information on the topic of responsible use and disposal of digital technologies.

During November, the FCAC will lead Financial Literacy Month (FLM), a yearly campaign to help Canadians improve their financial literacy skills and build their financial resilience. This year’s campaign will focus on managing debt and advancing the outcomes of the National Financial Literacy Strategy.

Managing debt remains a timely and important area of focus given rising household debt levels and the ongoing impact of inflation. The campaign will also address the most common and significant type of debt held by Canadians – high levels of mortgage debt.

Visit the Government of Canada Financial Literacy site to access educational resources and free financial tools to help them manage their debt and improve their financial health.

Follow the conversation on social media throughout the month using the hashtag #FLM2023 and subscribe to FCAC’s Financial Literacy Newsletter!

Research report: Buy now, pay later (BNPL) plans

Buy now, pay later (BNPL) plans are increasingly popular, and many Canadians (you might even be one of them!) are choosing to use BNPL payment options to pay for goods and services over an extended period of time without interest or financing fees. Even small purchases like clothing or makeup can now be purchased using these flexible payment options, but do consumers using this financing option have a sufficient understanding of the potential implications of their choice to buy now and pay later? 

Read Option Consommateurs’ report, “Buy now, pay later: assessment of risks and remedies" to review their analysis of the risks, protections and remedies that exist for consumers when opting for this type of payment model.

The organization received funds from the Office of Consumer Affairs' Contributions Program for Non-Profit Consumer and Voluntary Organizations to complete the study and to produce the associated report.