IKEA Canada introduces buy-now-pay-later loans of up to $10,000

With IKEA Canada’s new payment plan, you can now bring home a Billy bookcase and a Friheten sofa and pay for them later.

The PayPlan by RBC™ financing service is available for customers who can pay for their in-store purchases over a period of time. Annual percentage rates (APR) start at as low as 0%. For now, the service is only available in stores but will soon be available online in June.

According to a statement, the buy now/pay later service aims to make home furnishings more accessible for Canadians.

“In keeping with the company’s desire to create a better everyday life for the many, IKEA Canada is collaborating with Royal Bank of Canada (RBC) to launch PayPlan by RBC™ purchase-financing to its customers,” states a release. “This pay-over-time solution gives IKEA Canada’s in-store customers access to simple and straightforward financing with no hidden fees — all from a trusted source.”

So how does it work?


You’ll need to fill out an application at an IKEA store and find out immediately if you’re eligible for the PayPlan.

Next, you’ll have to choose a plan that works for you.

You can choose from several payment options, with loan terms ranging from 12 to 48 months. APR starts at 0% and goes up to 9.99% on purchases between $1,000 and $10,000.

You can then load the funds into your mobile wallet and tap to pay at checkout.

IKEA has certainly been trying to make furniture more accessible to Canadians.

The company has lowered prices on several popular items, such as the Kallax shelf (previously $109, now $99), the Malm bed frame (previously $399, now $349), and the Nymåne floor/reading lamp (previously $64.99, now $49.99). You can view more products with slashed prices here.

On March 22, IKEA posted a petition on Change.org titled “End the Double Tax on Second-Hand Items.”

The petition states that Canadians are being taxed for used items even though they may lose their original look, packaging, price, and value. IKEA is calling for changes so consumers “so that Canadians don’t have to pay tax twice on second-hand items.”

The petition currently has over 34,000 signatures.

With files from Isabelle Docto.