Late-night convenience store run checklist: a bag of Doritos, toilet paper, and a quick $3,000 loan.
Driving the news: Canadian convenience store chain Circle K has started offering personal loans to customers at some of its Ontario stores with the help of Toronto-based fintech iFinance, per the Globe and Mail.
- The loans — which range from $750 to $3,000, with interest rates starting at 9.99% — are secured in-store with a QR code that directs customers to an online application.
Why it matters: Young Canadians and newcomers, in particular, are taking on more debt than ever. To meet demand, more non-traditional lenders — like fintechs, and now convenience stores — are offering services that make borrowing money as easy as ordering a pizza.
- Buy now, pay later services like Klarna, which lets customers pay in instalments on small purchases like clothes and even meals, have become especially popular.
Yes, but: Canadian households already have the highest debt-to-disposable income ratio in the G7, and easier access to loans may compound the problem. As of the last quarter of 2024, Canadians owed $1.73 for every dollar of disposable income they had.
- Non-mortgage debt, which includes credit cards and personal loans, hit $37.9 billion last year, a 32% jump from 2023.
Bottom line: Flexible loan services can help people who have a hard time accessing capital from big banks, but making it too easy to borrow could put more people at risk of taking on debt that they can’t pay off.—LA