New Trend Sweeping Across Canada: Buying Groceries on Credit!
A 2026 report by UBS, a Swiss bank that manages the wealth of high-net-worth individuals, reveals that Canada is one of the richest countries in the world, ranking 13th with an average per capita wealth of C$567,000.
Under normal circumstances, such positive news would be cause for celebration. So why aren’t Canadians out in the streets lighting fireworks? The honest answer: They are busy trying to keep their families from going to bed hungry and facing eviction due to unpaid rent or mortgage premiums.
The Ugly Reality:
According to Koho Financial Inc., a local fintech company, an increasing number of Canadians are now using Koho’s “buy now, pay later” option to purchase groceries and daily essentials as rising costs continue to strain household budgets. Even more telling is that among Koho’s financial products—used by 2.5 million Canadians—the “Pay Later” service saw the strongest growth, with adoption rising from 0.82% of users in May 2025 to 1.71% in May 2026, a staggering 109% increase. This trend was most pronounced during the holiday grocery season but has remained elevated throughout 2026.
In contrast, the adoption of Koho’s credit-building and savings-interest features both declined over the same period.
“One of the most interesting findings is that affordability pressures are changing behavior, 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 they pay, yet spending keeps climbing.”
Koho’s report also indicated that average grocery spending per user increased by approximately 5% year-over-year, rising from $261 to $275 per month. This increase seems to be driven by more frequent trips to the grocery store, which rose by 2.9% from 5.86 to 6.03 trips per month. Another contributing factor is rising food costs.
The 16th annual edition of Canada’s Food Price Report (2026) estimates that a typical family of four will spend $17,571.79 on food in 2026, up by $994.63 from 2025, as overall prices are projected to increase by 4% to 6% throughout the year.
Bottom line: Food in Canada is now 27% more expensive than it was five years ago.
“Groceries are one of the most persistent financial pressures Canadians face,” noted Koho’s chief executive, Daniel Eberhard, explaining the sudden popularity of the “pay later” service.
Additionally, Canadians are shifting towards discount grocers to stretch their budgets. The report found an increase in shoppers heading to discount retailers, such as No Frills and Giant Tiger, as evidenced by more trips to these stores in the last 12 months.
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