Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
BNPL Plans Are Starting to Affect Credit in Canada
BNPL | July 5, 2025
Image: Freepik/Rawpixel.com
Buy Now Pay Later Activity is Now Appearing on Credit Reports
As reported by BNN Bloomberg on July 3, 2025, Equifax Canada now includes data from select Buy Now Pay Later (BNPL) providers in its credit files. This includes on-time and late payments, as well as outstanding balances.
See: GPR 2025 Shows Rise of Wallets BNPL and Real-Time Payments
More and more Canadians are using BNPL services, which offer flexible installment payments on everyday purchases but this short term convenience will eventually have long term consequences like influencing loan approvals. The new data is not yet a direct input to all credit scores, it may only be a matter of time that the information is visible to lenders and may influence decisions.
BNPL Reporting Is Expanding in Canada
Historically, most BNPL activity in Canada went unreported. According to the BNN report, TransUnion Canada is also preparing to add BNPL data to a separate section of its credit reports. Although the data isn't scored yet, it will be viewable by underwriters. The changes mirror developments in the U.S. where Equifax USA confirmed that it accepts BNPL data and allows it to impact credit scores if providers report accounts in a way that meets industry standards.
Implications
For Canadian borrowers, the inclusion of BNPL activity in credit files brings both potential benefits and new risks.
See: Putting it Into Perspective: Buy Now, Pay Later and Consumer Debt
On the positive side, borrowers who consistently repay BNPL loans on time could build a stronger credit file over time, especially those with a limited credit history. This could support future loan approvals if Canadian credit scoring models evolve to include the scope of this data. Including BNPL in credit reporting may also encourage a more disciplined approach to paying back BNPL loans.
However, there are growing concerns.
Many borrowers still assume BNPL is separate from credit. A 2023 pilot study by the Financial Consumer Agency of Canada found that 34% of users had more than one active BNPL plan. Missed payments or excessive usage, such as multiple files/accounts could signal financial stress and raise red flags during preapprovals and refinancing applications, even if traditional credit scores remain unchanged.
What Borrowers and Advisors Should Do
Borrowers should now treat BNPL accounts as serious credit obligations. That means avoiding overlapping plans, making payments on time, and regularly reviewing credit reports.
See: Blockchain Private Credit Grew 55% in 2023
Real estate professionals and lenders may want to update client checklists to ask about BNPL usage and monitor any accounts that appear in bureau files. While some reporting remains optional, the trend is clearly moving toward broader inclusion.
Outlook
BNPL is no longer invisible to Canadian lenders. Credit bureaus are adjusting their systems, and reporting standards are catching up. That means short term purchases can now shape long term credit outcomes. For condo buyers and those applying for major financing, staying ahead of this trend is essential. Responsible BNPL use may help build a stronger file. Poor management, even on small purchases, could now stand in the way of future (client) approvals.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply