Buy-now-pay-later grocery purchases have more than doubled across Canada in one year
A new report finds Ontario grocery transactions rose 2.1 per cent, while adoption of pay-later services jumped from 0.82 per cent to 1.71 per cent among users.
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Buy-now-pay-later services for groceries have more than doubled across Canada over the past year, with adoption jumping from 0.82 per cent to 1.71 per cent of users between May 2025 and May 2026, according to a new report from Canadian fintech company KOHO.
The Grocery Gap Report, which analyzed spending and financial behaviour among KOHO members, found that the average grocery transaction in Ontario increased 2.1 per cent over the year, rising from $41.78 to $42.65. Usage of pay-later features spiked during the holiday season and remained elevated throughout 2026, suggesting increasing financial pressure on shoppers as food prices climb.
Meanwhile, income indicators have not kept pace. Direct deposit adoption among KOHO users remained relatively flat, declining slightly from 4.47 per cent to 4.31 per cent, indicating that incomes are not rising in line with grocery costs.
Canadians are also shifting where they shop. Monthly visits to discount grocery retailers rose 4.1 per cent year over year, increasing from 2.75 to 2.87 trips per user, while visits to premium grocery stores remained virtually unchanged at 2.60 trips per user per month.
Several Toronto residents told reporters they have noticed the squeeze. One shopper said her grocery bill has increased roughly 30 per cent since the pandemic and now relies on meal planning and online shopping to track totals before checkout. Another said his weekly groceries jumped from about $90 last year to $150 now. The report suggests many Canadians are adopting flexible payment options and shopping habits to cope with sustained food inflation.
