Canada is quietly setting the global standard for digital debt collection.

Despite economic volatility and a historically conservative collections market, Canadian consumers are embracing self-service and digital-first repayment at rates that rival — and often surpass — other mature markets.

This shift isn’t just a curiosity. It’s a signal: expectations are changing. Today’s borrowers want convenience, respect, and control — and they’re loyal to lenders who offer it.

For creditors navigating rising debt stress and shifting regulations, customer engagement and behavioural insights in Canada offer a roadmap. At InDebted, we’re seeing how an AI-powered, human-centered approach to collections is delivering powerful outcomes across the country — for BNPL providers and their customers alike.

Why Canada’s largest BNPL providers choose InDebted’s AI-powered third-party collections

62% of all Canadian accounts referred to InDebted are from the largest BNPL providers in the region. This includes industry forerunners such as Klarna, who are continually raising the bar in fintech. The results speak for themselves:

Smart engagement, happier customers

15.6% higher email click rate in Canada compared to the United States on BNPL accounts

This is a reflection of how deeply embedded digital behavior is in the Canadian collections journey. While US engagement remains strong, it often requires a more hybrid approach. This includes a carefully deployed voice strategy to complement digital-first outreach. However, in Canada, digital is not just preferred – it’s essential. Our AI-powered solution dynamically adapts content and timing to what resonates — no need for pushy tactics, just thoughtful digital nudges.

Canadian customers engage via SMS 3x more than emails

For Canadians, SMS isn’t an afterthought — it’s a preferred channel. The 3x higher inbound SMS engagement from Canadian customers highlights the importance of meeting people where they are. While email remains essential, SMS offers Canadian consumers a fast, low-friction way to manage debts on their own terms. This helps shape how we prioritise omnichannel support and optimise customer experience across regions.

Resolution-driven behaviour

91.2% of paying Canadian customers manage their accounts without speaking to an agent

This isn’t just convenience — it’s empowerment. Customers are choosing to resolve their debts on their own terms, at their own pace. InDebted’s online Customer Portal and intuitive omnichannel journeys make it easy for them to do exactly that.

This demonstrates an overwhelming preference for convenience, as well as a modern collections experience. When we compare this to regions such as New Zealand, where the self-serve rate is 85.5%, Canada is a clear front runner

68% prefer monthly repayments and 72% resolve their accounts within 6 months

Canadian consumers aren’t just engaged — they’re resolution-oriented. The strong preference for monthly repayments shows a desire for structured, sustainable repayment experiences that fit naturally into their financial routines. And with nearly three-quarters of customers fully resolving their accounts within six months, it’s clear that when the experience is respectful and frictionless, repayment follows.

It’s proof that a thoughtful, AI-powered solution can scale liquidation—without ever compromising customer experience.

Economic pressure increases the demand for digital-first debt collection

Recent guidance from the Bank of Canada warns that trade disruptions could increase consumer debt stress across vulnerable segments. As inflation continues to impact Canadian households, and new U.S. tariffs drive up the cost of consumer goods, lenders are under pressure to optimise collections — not just to improve recovery, but customer retention as well.

At the same time, Canada is modernising repayment infrastructure with the phased rollout of Pre-Authorised Debit (PAD) for recurring payment plans. This unlocks more seamless repayment journeys for consumers and sets a higher standard for digital-first engagement.

“In this climate, dial-heavy tactics simply don’t work. The real differentiator today? Engaging customers where they are – online, on their time, and on their terms. Now, the ability to engage respectfully, digitally and at scale is more than a competitive advantage — it’s a resilience strategy.” - Jag Khangura, Managing Director Canada, InDebted

Setting the benchmark for the future of Canadian collections

Canada is already showing what’s possible when a modern collections approach meets a digitally-engaged market. High self-service rates, strong customer-led interactions, and reliable liquidation performance all point to a collections strategy that is not only effective, but aligned with the expectations of today’s consumer.

As financial pressure builds and regulatory frameworks shift, creditors need partners who can drive recovery without compromising customer experience or brand trust. Our results in Canada demonstrate that it’s not just possible: it’s already happening.