Walmart offers buy now, pay later option in Canada

Dan Berthiaume
Senior Editor, Technology
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Walmart is expanding BNPL to Canada.
Walmart is expanding BNPL to Canada.

The Canadian subsidiary of Walmart is partnering with a well-known global payments provider to offer interest-free buy now, pay later (BNPL) purchases.

Walmart Canada is collaborating with Klarna to offer BNPL payment on its e-commerce site and via the retailer’s and Klarna’s mobile apps. By introducing Klarna’s BNPL service, Walmart Canada is enabling customers to split their purchase into four flexible, interest-free payments spread over six weeks.

Customers can sign up for a Klarna account with basic information required and select Klarna as their method of payment at Walmart checkout. A new lending decision is made in real time for each purchase, with no impact to credit scores. 

Orders between $50 and $4,000 across all product categories are eligible, with some restrictions. Klarna also sends additional emails and in-app reminders to help customers stay on top of their payment schedules, offers budgeting tools in the Klarna app and restricts the use of its services if payments are missed. 

“Introducing Buy Now, Pay Later for shopping through and our Walmart Canada app is the latest way we’re providing more payment choice and flexibility for customers,” said Laurent Duray, chief e-commerce Officer, Walmart Canada. “Our focus has always been to help Canadians save money and live better and as we head into the holiday season, we’re prioritizing the customer experience by providing even more options when Canadians choose to shop with us.”

"As consumer payment and shopping preferences evolve, retailers must adapt and embrace innovative technologies, including flexible alternative payment options," said Steven Clarke, head of Canada at Klarna. "We're excited to welcome Walmart Canada to Klarna's fast-growing global network of over 500,000 retail partners, offering Canadian consumers the convenient, interest-free payment alternatives they’re looking for."

In addition to BNPL, Walmart Canada customers outside of Quebec using the Walmart Rewards Mastercard can split a basket over $199.99 into six monthly installments. A set-up fee applies.

In the U.S., Walmart has been offering a flexible BNPL payment option with Affirm since February 2019, when the discounter began allowing customers to use Affirm to make installment payments on purchases at more than 4,000 Walmart Supercenter stores nationwide. 

Walmart also integrated Affirm as a payment option on the e-commerce site, and makes the service available in Walmart Vision Centers. Since then, Walmart has replaced its layaway program with installment payments from Affirm.

And media reports have indicated One, a fintech company jointly backed by Walmart and investment firm Ribbit Capital, plans to launch a BNPL service that customers could use online and in-store at Walmart as well as other retailers as soon as by the end of 2023.