PayBright Review 2022: Buy Now, Pay Later Platforms in Canada

If you can’t afford to pay for a large purchase all at once, a buy now, pay later platform is a great option to finance your investment in smaller payments.

Popular with the younger generation, shop now, pay later companies allow you to finance larger purchases into bi-weekly or monthly payments. Most platforms charge no interest or fees for short-term, bi-weekly payment plans, and it does not usually affect your credit score.

Buy now, pay later platforms like PayBright and Afterpay are an option for financing lifestyle purchases without accruing credit card debt.

This PayBright review covers everything you need to know about this payment financing provider, including how it works, the plans offered, who is eligible, pros and cons, and if buy now pay later plans are worth it.

What is PayBright?

PayBright is a leading installment payment provider in Canada. They offer payment plans where customers can break down the cost of a large purchase into biweekly or monthly installments.

PayBright Canada is available at over 7,000 participating merchants in-store and online. Some retailers that use PayBright include Apple, Wayfair, Samsung, and Endy.

Customers can use PayBright to pay off smaller purchases in 4 interest-free biweekly payments or larger purchases over 6 to 60 months, starting at 0% interest.

How Does PayBright Work?

To use PayBright, shop online at participating stores and select PayBright as the payment option at checkout. Under the “payment options” section of the checkout, you should see a “Pay with PayBright” option.

Once you select that, you’ll need to enter your mobile phone number. PayBright will send you a PIN to confirm, and once you do, you’ll enter your details and get set up with a PayBright plan.

Confirm your payment plan, and you’re done!

Let’s say you choose to pay in 4 bi-weekly installments. Your credit or debit card will be charged for the first payment, then the remaining three payments are charged to your card every two weeks.

Depending on what you choose, your payment plan will either be interest-free or range from 0% to 29.95% APR.

Types of PayBright Payment Plans

PayBright offers two payment plans:

Pay in 4 – for purchases under $1,000, customers can pay in 4 bi-weekly payments. This plan has 0% interest and no processing fees.

Equal monthly payments – this plan has a term length from 3 up to 60 months. PayBright interest rates range from 0% to 29.95% APR.

Some PayBright plans include a small monthly processing fee.

To find out the available plans for PayBright retailers in Canada, contact each merchant directly or check their website.

Who is Eligible for a PayBright Payment Plan?

To qualify for a PayBright application, you must:

  • Be 18+ and reside in Canada
  • Have a credit payment history
  • Have a Canadian Visa or Mastercard credit or debit card
  • Have a Canadian phone number able to receive SMS
  • Meet the minimum cart size needed to use PayBright at checkout

What Can I Finance Using PayBright?

Over 7,000 retailers in categories like fashion, electronics, and home & furniture use PayBright as a payment option at checkout.

Popular retailers that accept PayBright include Apple, the Bay, Wayfair, Browns Shoes, the Source, and Samsung.

You can view the full list of retailers here.

PayBright Review

Does PayBright Affect My Credit Score?

Signing up for a PayBright account and using the Pay in 4 payment plan does not affect your credit score.

However, the monthly payment plan is recorded and will affect your credit score, as with any other long-term financing plan.

Is PayBright Legit?

Yes, PayBright is legit. The company has an average rating of 4.6 on Trustpilot with over 7,500 reviews and over 2,000 reviews on Google.

Many major retailers like Apple, Samsung, and Steve Madden accept PayBright as a financing option.

And in 2017, PayBright won the award for Canada’s Top Fintech Firm.

Pros and Cons of PayBright

Over 7,000 retailers in Canada have partnered with PayBright, making it easy to finance large purchases.

If you use the Pay in 4 plan, you will not pay any interest or processing fees.

Paybright offers flexible payment plans for larger purchases, from 3 to 60 months, and it is easy to sign up and get started.

With either payment plan, there is no option to split your purchase and pay part of it upfront and the rest with PayBright – the total amount of your order is paid with PayBright.

When selecting the PayBright option at checkout, you cannot choose between the monthly installments and Pay in 4 options. If it’s a small purchase under $1,000, you must choose the Pay in 4 plan.

Depending on how many months you take to pay off your purchase, the processing fees can add up.

On top of interest, you’ll pay monthly processing fees ranging from $1 to $4. For example, if your plan lasts 60 months, you could be paying up to $240 in processing fees. 

Finally, PayBright does a hard credit check on the monthly payment plans, so it could show up on your credit report and can affect your credit score. 

PayBright vs Afterpay

Afterpay is another shop now, pay later platform that is always interest-free. It is available in Canada, the US, Australia, New Zealand, and the UK.

With Afterpay, purchases are split into 4 payments over six weeks. Afterpay provides a spending limit that gradually increases each time you make payments on time.

To sign up, you just need to provide your email address, phone number, date of birth, and have a debit or credit card handy.

Afterpay does not accept 100% of orders. They check to ensure you are a responsible shopper and can pay them back. When approving orders, they consider things like how much money you have on your card, how much you have to repay, and the number of orders you have open with Afterpay.

There are no fees if you pay on time. If you miss a payment, AfterPay will pause your account until you can make all payments.

Here are some personal loan options you can use to finance large purchases. Two top sites for comparing loan rates are LoansCanada and LoanConnect.

Are Buy Now, Pay Later Plans Worth It?

Buy now, pay later plans can be worth it, but it depends on the plan and your financial situation.

If you choose a biweekly payment plan like PayBright with no interest or processing fees and know you will be able to pay it off by the end of the term, then in most cases, it is worth it.

However, if you can pay the full amount right away, you should pay it upfront to avoid processing fees, interest charges, or late fees.

Experts recommend using buy now, pay later plans only for necessary or large expenses, like electronics, a new mattress, or furniture. It’s not a good idea to risk going occurring debt for non-essential purchases.

If you struggle to pay your bills on time or don’t have a lot of money saved, it’s best to avoid BNPL plans, as you can be charged late fees or high interest rates if you aren’t able to pay on time.

PayBright Canada FAQs

What are PayBright alternatives in Canada?

A few other buy now, pay later companies like PayBright include AfterPay, Sezzle, and Affirm. These alternatives are available in Canada and allow you to split your purchase into multiple payments with little to no interest.

How much does PayBright cost?

PayBright is free to sign up for. The Pay in 4 financing plan has no interest or processing fees, but the monthly financing plan has an interest rate ranging from 0% to 29.95% APR plus monthly processing fees from $1 to $4.

What happens if I can’t pay PayBright?

If you miss a Pay in 4 payment, PayBright’s system will automatically reschedule the payment on your debit or credit card at a later date. Check your PayBright account to view the updated payment schedule.

If you miss an Equal Monthly payment, PayBright will automatically reschedule the payment for the following Friday or every other Friday until the payment clears.

PayBright does not charge any late fees; however, missing a payment will prevent you from using PayBright in the future.

How does PayBright make money?

PayBright makes money in three ways. They charge interest on monthly payment plans, take monthly processing fees, and charge merchants fees.

How does PayBright take money?

PayBright takes money from your Visa or Mastercard credit or debit card on your scheduled payment date, either bi-weekly or monthly. They do not accept prepaid cards, e-transfers, Amex, PayPal, or online bill payments.

Can I pay PayBright early?

Yes, you can pay PayBright early with no penalty. You can make partial payments or pay off your remaining balance at any time. To make payments early, log in to your PayBright account, select the plan you want to pay off, and select “Make a Payment.”

How do I increase my PayBright limit?

PayBright assigns your spending limit based on certain factors to determine that you can pay off your loan. Thus, you cannot increase your spending limit.

How do you get approved for PayBright?

The signup and approval process for PayBright is fast and does not affect your credit score. To qualify, you must be a resident of Canada and be 18 years of age or older, have a credit payment history, have a Visa or Mastercard credit or debit card, have a Canadian phone number able to receive SMS, and meet the minimum cart size needed to use PayBright at checkout. You can look on each retailer’s website to see if you prequalify for PayBright.

Does PayBright check my credit?

PayBright only requires a soft credit pull for the Pay in 4 bi-weekly payment plan, which will not affect your credit score. However, they do a hard credit pull if you sign up for the monthly payment plan.

Related:

Retirement 101 eBook - 3D

Author

Photo of author
Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Shares
Share
Pin
Tweet
WhatsApp
Reddit