Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePersonal FinanceCanadians increasingly using 'buy now, pay later' on groceriesRising costs continue to strain household budgets, says survey You can save this article by registering for free here. Or sign-in if you have an account.Prime Minister Mark Carney visited a grocery story in Brampton, Ont., in the leadup to the July start of the federal grocery and essentials benefit. Photo by Peter J. Thompson /Financial PostWe independently select everything we recommend. Buying through us may earn us a commission, which supports our work.Many Canadians are utilizing the “buy now, pay later” option as rising costs continue to strain household budgets. Koho Financial Inc.’s “pay later” adoption has more than doubled from last year, up 109 per cent as Canadians opt for it for essential items like groceries, the Toronto-based fintech said in a report.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorIt said that among all KOHO products analyzed, “Pay Later” recorded the strongest adoption growth by a wide margin, rising from 0.82 per cent of users in May 2025 to 1.71 per cent in May 2026, with the largest increase during the holiday grocery season before remaining elevated throughout 2026.“Pay later” adoption outpaced all other Koho products during the study period, pointing to growing demand for financial flexibility as Canadians navigate higher everyday costs. By comparison, Koho’s credit building and savings interest feature adoption both declined over the same period. Koho’s financial tools are used by more than 2.5 million people from across Canada, it said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“One of the most interesting findings is that affordability pressures are changing behaviour, but not always in predictable ways,” said Koho’s head of consumer trust, Faye Lucas. “The findings make it clear that grocery costs are rising faster than Canadians can adapt. People are changing where they shop, how often they go, and how often they pay and yet the spending keeps climbing.”While Canadians are making deliberate adjustments to manage rising food costs, grocery spending continues to climb, it said. Koho’s report found that average grocery spending per user increased approximately five per cent year-over-year, rising from $261 to $275 per month.Koho said the increase in grocery spending was driven by both larger baskets and more frequent trips to the grocery store. The average grocery basket size grew 2.4 per cent, from $44.58 to $45.65 per transaction, while grocery trip frequency was up 2.9 per cent, from 5.86 trips per month to 6.03 trips per month.“Groceries are one of the most persistent financial pressures Canadians face,” Koho chief executive Daniel Eberhard said in a news release.Discount grocers appear to be winning as shoppers look for ways to stretch their budgets. The report found that Canadian shoppers are shifting toward discount grocery retailers, like No Frills or Giant Tiger, as trips to such stores have also increased.It said that Canadians are becoming more intentional about where they shop as they look for ways to manage rising food costs. Trips to discount grocery retailers increased 4.1 per cent year-over-year, while trips to premium grocery retailers remained essentially unchanged, increasing just 0.3 per cent. At the same time, discount basket sizes grew 1.6 per cent, compared to 0.9 per cent among premium retailers.Meanwhile, other types of household spending aside from groceries have also increased. For one, spending on food delivery has gone up nine per cent year-over-year, rising from $215 to $235 per month across major platforms including DoorDash, Uber Eats and SkipTheDishes. Spending on eating and drinking out increased four per cent, while retail spending is up six per cent.The report draws on grocery spending and financial behaviour data from more than 173,000 Koho members between May 2025 and May 2026. A separate 17,400-member longitudinal cohort was used to validate year-over-year spending trends. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.