Canada Buy Now Pay Later Business Report 2025-2030: Afterpay, Sezzle, Klarna, Affirm, and PayBright are Actively Shaping the Competitive Landscape of the Burgeoning $7.5 Billion Industry
Canadian Buy Now Pay Later Market
Dublin, Feb. 17, 2025 (GLOBE NEWSWIRE) -- The "Canada Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.The BNPL payment market in Canada is expected to grow by 12.0% on annual basis to reach US$7.50 billion in 2025. The BNPL market experienced robust growth during 2021-2024, achieving a CAGR of 19.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.6% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 6.69 billion to approximately USD 11.32 billion.
Canada's BNPL sector is evolving rapidly, driven by growing adoption across diverse sectors, the emergence of domestic players, and increasing regulatory oversight. The industry is expected to expand significantly over the next 2-4 years, with heightened competition, innovation, and regulatory compliance shaping the market's trajectory. Senior executives should closely monitor regulatory developments and strategic partnerships to leverage opportunities and mitigate risks in this dynamic landscape.
This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Canada, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
Competitive Landscape and Regulatory Developments in Canada's Buy Now, Pay Later (BNPL) MarketThe Canadian BNPL market is poised for sustained growth, fueled by increasing consumer demand for flexible payment options and the rapid expansion of e-commerce. Key players such as Afterpay, Sezzle, Klarna, Affirm, and PayBright are actively shaping the competitive landscape, leveraging strategic partnerships and technological innovations to strengthen their positions. This growing ecosystem highlights the sector's potential to redefine payment preferences across Canada's retail and non-retail industries.Over the next 2-4 years, the competitive dynamics in the Canadian BNPL market will likely be marked by increased consolidation, technological advancements, and sectoral diversification. Larger providers are expected to acquire smaller players to achieve economies of scale and broaden their service offerings. Additionally, BNPL solutions are projected to expand into non-traditional sectors such as healthcare, education, and home improvement, further embedding themselves into consumer lifestyles. As the market matures, regulatory scrutiny from organizations such as the Financial Consumer Agency of Canada and advocacy groups will intensify, ensuring consumer protection and transparency in BNPL agreements, ultimately fostering a more sustainable and trust-driven industry.Current State of the BNPL Market and Key Players
The BNPL sector in Canada has experienced significant growth, driven by increased consumer demand for flexible payment options and the expansion of e-commerce.
Afterpay: An Australian-based BNPL provider, Afterpay has established a strong presence in the Canadian market, partnering with various retailers to offer installment payment options.
Sezzle: A US-based firm, Sezzle has gained traction in Canada by collaborating with merchants to provide BNPL services, appealing particularly to younger consumers.
Klarna: Originally from Sweden, Klarna has expanded into Canada. It offers flexible payment solutions and recently integrated with Apple Pay to enhance user convenience.
Affirm: A US-based BNPL provider, Affirm has entered the Canadian market, partnering with merchants to offer consumers installment payment options.
PayBright: A Canadian BNPL provider, PayBright has been acquired by Affirm, expanding its reach and capabilities in the Canadian market.
Increasing BNPL Adoption Across Retail Sectors
The BNPL sector in Canada is increasingly being integrated into industries beyond traditional retail, such as travel, entertainment, and essential services. For instance, Afterpay, Klarna, and Sezzle have partnered with merchants such as Indigo Books & Music to offer flexible payment options, particularly during high-demand holidays. This shift reflects the growing versatility of BNPL solutions and their appeal to consumers and merchants.
The rapid growth of e-commerce in Canada has significantly contributed to expanding BNPL services as consumers gravitate toward seamless digital payment solutions. Younger generations, including Millennials and Gen Z, are leading this shift, favoring BNPL over traditional credit cards due to interest-free installments and payment flexibility. Additionally, merchants are adopting BNPL to reduce cart abandonment rates and attract cost-sensitive shoppers, further embedding this payment option across the retail landscape.
BNPL adoption in Canada is expected to intensify as providers compete for partnerships with high-profile retailers and explore opportunities in non-traditional sectors. This trend is likely to gain momentum amid ongoing economic uncertainties, with consumers increasingly relying on flexible payment options for managing their finances. Providers must innovate and diversify their offerings as competition grows to capture a larger share of the expanding BNPL market.
Entry of New Players and Domestic Innovations
The Canadian BNPL market is witnessing the entry of new domestic players, such as KOHO, which has introduced a BNPL product catering to larger purchases. These startups are leveraging the rapid growth of the BNPL sector to carve out a market share by offering flexible payment solutions. Domestic innovations highlight the potential for local players to compete by addressing unique consumer preferences and regulatory requirements.
The rapid adoption of BNPL in Canada presents significant opportunities for domestic fintech companies to gain traction. Local providers can appeal to consumers who value Canadian brands and offerings tailored to their needs. However, competition from established international players such as Afterpay and Klarna drives local innovation, forcing new entrants to differentiate through unique features, customer service, and seamless integration with Canadian banking systems.
The entry of new players is expected to intensify competition, leading to a wave of innovation and more consumer-centric products. Domestic providers may capitalize on opportunities to fill gaps left by international competitors, such as creating solutions that align closely with Canadian consumer habits and financial frameworks. Over time, this dynamic competition will likely result in improved services and diverse
Growth in Small- and Medium-Sized Merchant Adoption
Small and medium-sized merchants in Canada are increasingly turning to BNPL services to compete with larger retailers and online platforms. By partnering with BNPL providers and platforms such as Shopify, these businesses can easily integrate flexible payment solutions, leveling the playing field. This adoption allows smaller merchants to enhance their offerings and cater to the growing consumer demand for installment-based payments.
Platforms such as Shopify have simplified integrating BNPL services, making it more accessible for smaller businesses. These payment options enable merchants to attract price-sensitive customers who are more likely to complete transactions when flexible payment plans are available. By addressing consumer needs and strengthening their competitiveness, small businesses can boost customer retention and reduce cart abandonment rates.
The adoption of BNPL among small and medium-sized enterprises is expected to grow steadily as providers introduce tailored solutions for these merchants. This trend could democratize the availability of BNPL services, allowing smaller retailers to compete in niche markets traditionally dominated by larger players. As more small businesses adopt BNPL, its penetration across diverse retail categories will likely accelerate, further embedding flexible payment solutions in the Canadian retail ecosystem.
Growing Focus on Consumer Protection and Regulation
The Financial Consumer Agency of Canada (FCAC) has increased its scrutiny of the BNPL sector to better understand consumer behavior and the potential risks associated with these services. The focus is primarily on protecting consumers from over-indebtedness and ensuring greater transparency in fees and repayment terms. These measures aim to address growing concerns about some BNPL users' financial vulnerability and create a safer environment for consumers.
As BNPL adoption grows, concerns about consumers overextending their finances have prompted Canadian regulators to take proactive steps. Regulatory trends in international markets, such as the U.S. and Europe, influence Canada to address similar risks, ensuring that Canadian practices align with global standards. Additionally, complaints about unclear terms and unexpected fees have increased pressure on providers to adopt transparent and standardized agreements.
Stricter regulatory measures are expected to reshape the BNPL landscape, driving providers to implement more robust credit assessments and clearer disclosure practices. While these changes aim to safeguard consumers, they may also limit the operations of smaller providers unable to meet compliance costs. Consequently, the market could see further consolidation, with larger, well-established players gaining a competitive advantage and setting new industry standards for transparency and responsibility.
Expansion into Non-Traditional Sectors
BNPL services in Canada are increasingly being adopted in non-traditional sectors such as healthcare, education, and home improvement. Providers such as PayBright, now part of Affirm, have partnered with healthcare providers to allow patients to finance treatments over time. This expansion highlights the versatility of the BNPL model and its potential to meet consumer needs beyond traditional retail purchases.
Consumers seek flexible payment options for high-cost essential services, such as medical procedures or tuition fees. By reducing the upfront financial burden, BNPL providers make these services more accessible to a wider audience. This growing demand underscores the opportunity for BNPL to address financial barriers in sectors where affordability is a significant concern.
The diversification of BNPL into additional sectors is expected to drive adoption for high-ticket purchases, offering providers a chance to secure a competitive edge in untapped markets. As more healthcare, education, and home improvement businesses recognize the value of BNPL solutions, partnerships in these areas are likely to increase. Providers that successfully integrate their services into these sectors may benefit from enhanced market reach and long-term growth opportunities.
Recent Launches, Mergers, and Acquisitions
Klarna's Integration with Apple Pay: In October 2024, Klarna announced its integration with Apple Pay, allowing Canadian consumers to make BNPL purchases directly through Apple's payment platform.
Affirm's Acquisition of PayBright: In January 2021, Affirm completed its acquisition of PayBright, a leading Canadian BNPL provider, to strengthen its presence in the Canadian market.
Anticipated Competitive Dynamics
Market Consolidation: As the market matures, consolidation among BNPL providers is likely, with larger firms acquiring smaller competitors to expand their customer base and service offerings.
Technological Innovations: Providers are anticipated to invest in technology to enhance user experience, such as integrating BNPL options into digital wallets and offering personalized payment plans.
Expansion into New Sectors: BNPL services are expected to extend beyond traditional retail into sectors such as healthcare, education, and home improvement, providing consumers with more flexible payment options across various industries.
Regulatory Changes Implemented
In Canada, the BNPL sector has come under increased regulatory scrutiny over the past year. In October 2024, Option Consommateurs, a Quebec-based consumer rights group, released a report titled "Buy Now, Pay Later: Assessment of Risks and Remedies," which called on governments to regulate BNPL services to protect consumers. The report highlighted concerns about the lack of clarity in BNPL contracts and the potential for consumers to incur unexpected fees.
Key Attributes:
Report Attribute
Details
No. of Pages
88
Forecast Period
2025 - 2030
Estimated Market Value (USD) in 2025
$7.5 Billion
Forecasted Market Value (USD) by 2030
$11.32 Billion
Compound Annual Growth Rate
8.6%
Regions Covered
Canada
Companies Featured
Afterpay
PayBright
Klarna
Sezzle
Zip
Splitit
LatitudePay
Flexiti
Mogo
Perpay
For more information about this report visit https://www.researchandmarkets.com/r/braf61
About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
Canadian Buy Now Pay Later Market
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Private companies who hold 57% of Newegg Commerce, Inc. (NASDAQ:NEGG) gained 118%, insiders profited as well
Newegg Commerce's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public Hangzhou Lianluo Interactive Information Technology Co.,Ltd owns 57% of the company 31% of Newegg Commerce is held by insiders AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A look at the shareholders of Newegg Commerce, Inc. (NASDAQ:NEGG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Private companies gained the most after market cap touched US$101m last week, while insiders who own 31% also benefitted. Let's take a closer look to see what the different types of shareholders can tell us about Newegg Commerce. See our latest analysis for Newegg Commerce Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them. There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Newegg Commerce's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely. We note that hedge funds don't have a meaningful investment in Newegg Commerce. Our data shows that Hangzhou Lianluo Interactive Information Technology Co.,Ltd is the largest shareholder with 57% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 31% and 0.2%, of the shares outstanding, respectively. Faching Chang, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that insiders maintain a significant holding in Newegg Commerce, Inc.. Insiders have a US$31m stake in this US$101m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Newegg Commerce. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 57%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Newegg Commerce you should be aware of. Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Hamilton Spectator
an hour ago
- Hamilton Spectator
MediPharm Reminds Shareholders to Vote in Advance of June 13 Deadline
TORONTO, June 11, 2025 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) ('MediPharm,' the 'Company,' 'we' or 'us'), a pharmaceutical company specialized in precision-based cannabinoids, today reminded its shareholders that the deadline is approaching to cast your vote for the upcoming Annual and Special Meeting of Shareholders on June 16, 2025 (the 'Meeting'). All votes must be received no later than 3:00 p.m. (Eastern time) on Friday, June 13, 2025. We encourage shareholders to please vote using ONLY the GREEN proxy or GREEN voting instruction card and to support each of the director nominees recommended by MediPharm's Board of Directors (the 'Board') and the other matters being considered at the Meeting. To ensure your proxy is counted at the Meeting, please submit it well in advance of the June 13 proxy cut-off. Please remember that your vote is important, regardless of the number of shares you own. MediPharm's Strategy Is Working MediPharm has undergone a successful transformation over the past three years, led by David Pidduck who joined as CEO in April 2022. Faced with negative gross margins and an operating loss of $48.9 million in 2021, the Company implemented a plan to refocus operations, prioritizing the most strategic business lines, divesting of non-core assets and reducing operating costs. The acquisition of VIVO Cannabis Inc. in April 2023 provided a foundation to accelerate international growth and realize synergies from combining the two companies. We described our strategic turnaround in a Chair's Letter to Shareholders dated May 11, 2025 . In Q1 2025, we continued our track record of year-over-year revenue growth, led by an 87% revenue increase in the international medical market which now represents more than half our revenue. We achieved positive Adjusted EBITDA1 for the first time in more than five years and our gross profit margin of 38.7% was the highest in more than five years. Operating loss narrowed to less than $0.5 million, an improvement of more than $3 million from Q1 2024. A strong cash position with virtually no debt enabled us to invest in inventory to pursue near-term growth opportunities. With diversification in our product mix and sales channels, a strong reputation as a GMP-certified producer and expanding international partnerships, MediPharm has established a solid foundation for further growth. We are confident the strategy and team currently in place is the best way to create sustainable value. The Dissident Group has NOT Made a Case for Change Apollo Technology Capital Corp. ('Apollo'), led by Chairman and CEO Regan McGee, and former MediPharm CEO and director Patrick McCutcheon (collectively, the 'Concerned Stakeholder'), have filed an amended and restated dissident proxy circular dated May 15, 2025, as updated by an addendum dated June 4, 2025, nominating six alternative directors (the 'Dissident Nominees') for the Board. In recent weeks we have described numerous deficiencies in Apollo's plan and the track record of Mr. McGee and the other Dissident Nominees. With the addition of Pat McCutcheon to the dissident team, a number of new concerns now emerge. Important points for shareholders to remember include the following. Patrick McCutcheon's Tenure at MediPharm Mr. McCutcheon, who is now formally acknowledged as a member of the Concerned Stakeholder dissident group, served as CEO of MediPharm until December 10, 2020, Chairman of the Board until August 16, 2021, and as a director until December 7, 2021. While Apollo has been critical of the current leadership team's performance on such measures as share price, revenue growth, gross profit, cash usage and operating loss, we note the following about Mr. McCutcheon's track record with the Company. The Board urges shareholders to send Mr. McGee and Mr. McCutcheon a strong message that you want to stop their expensive and aggressive attacks against your Company. Vote for the Highly Qualified MediPharm Nominees MediPharm urges shareholders to vote only using the GREEN proxy or GREEN voting instruction form in support of all of the Company's nominees and resolutions. To ensure your vote is counted, shareholders are encouraged to proactively contact their broker to obtain their 16-digit control number associated with the GREEN management proxy. Once received, you can cast your vote by visiting . You may receive materials or outreach from the dissident — please disregard any such communications and vote only using the GREEN proxy in support of the Company's nominees. About MediPharm Labs Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets. In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company's current foreign drug manufacturing site registration with the US FDA. In 2023, MediPharm acquired VIVO Cannabis Inc., which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical Australia PTY Ltd. and Beacon Medical Germany GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions. The Company carries out its operations in compliance with all applicable laws in the countries in which it operates. Shareholder Voting Assistance: If you have any questions or require any assistance in executing your GREEN proxy or voting instruction form, please call Sodali & Co at: North American Toll-Free Number: 1.888.777.2059 Outside North America, Banks, Brokers and Collect Calls: 1.289.695.3075 Email: assistance@ North American Toll-Free Facsimile: 1.877.218.5372 For up-to-date information and assistance in voting please visit: Investor Contact: MediPharm Labs Investor Relations Telephone: +1 416.913.7425 Email: investors@ Media Contact: John Vincic Oakstrom Advisors +1 (647) 402-6375 john@ Cautionary Note Regarding Forward-Looking Information: This news release contains 'forward-looking information' and 'forward-looking statements' (collectively, 'forward-looking statements') within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as 'expects', or 'does not expect', 'is expected', 'anticipates' or 'does not anticipate', 'plans', 'budget', 'scheduled', 'forecasts', 'estimates', 'believes' or 'intends' or variations of such words and phrases or stating that certain actions, events or results 'may' or 'could', 'would', 'might' or 'will' be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: timing of the Annual and Special Meeting, the ability of the Company to pursue near-term growth opportunities, future growth opportunities available to the Company, sustainable value creation at MediPharm, any impacts to MediPharm shareholders of the actions relating to the Dissident Nominees described herein, and any outcomes resulting from the circumstances and information cited herein. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs' continuous disclosure filings, available on the SEDAR+ website at . There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. ___________________________________ 1 Represents a non-GAAP financial measure, which is not a standardized financial measure under IFRS and which might not be comparable to similar financial measures disclosed by other issuers. MediPharm calculates Adjusted EBITDA as net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual or non-recurring items added back. Refer to the sections entitled 'Use of Non-IFRS Financial Measures' and 'Reconciliation of Non-IFRS Measures' in MediPharm's management's discussion and analysis for the three months ended March 31, 2025, which is incorporated by reference herein and which can be located on MediPharm's profile on SEDAR+ at .
Yahoo
an hour ago
- Yahoo
Business leader says BC Ferries' hiring of Chinese shipyard is 'informed decision'
VICTORIA — A business leader on ferry-dependent Vancouver Island says BC Ferries made a "strongly informed decision" in hiring a Chinese shipyard to build four new major vessels. Both the NDP government and B.C. Conservative Opposition have criticized the choice of Chinese state-owned China Merchants Industry Weihai Shipyards to build the new ferries. Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, said the Chinese contract in the best interests of all who rely on BC Ferries, adding that BC Ferries needs more capacity to meet growing demand. "So, this is very timely, and it's a good thing to have this happen," Williams said. The decision is also making waves in Ottawa, where Conservative MP Jeff Kibble, whose riding neighbours Victoria, asked Transport Minister Chrystia Freeland whether Ottawa would make a $33-million federal grant to BC Ferries conditional on buying Canadian-built ships. Freeland said she "absolutely" shared concerns about procurement at all levels, but noted that the ferry agreement was not a federal contract. Williams said few companies around the world have the capacity to build vessels of such size, and BC Ferries did "due diligence" for years in a global procurement process that did not receive any Canadian bids. "So, at this point, I think it's in the best interest of all the people, who rely on BC Ferries … especially up and down the coast in communities that are very reliant upon it," he said. Williams said he would like to see a fifth vessel added to the contract to meet growing demand. The independent BC Ferry Commission rejected a request by BC Ferries earlier this year to add a fifth major vessel to the contract, saying it is "neither essential nor affordable." "It's too bad the fifth one hasn't been approved by the Ferry Commissioner, but it's great to see this, because the fleet is aging," Williams said. Dan McGreer, an adjunct professor in UBC's Faculty of Applied Science, previously worked for a firm that did some of the early concept development for the new ferries, but he wasn't involved in the contract. McGreer couldn't say why BC Ferries chose that shipyard. "But I suspect that the advantage the Chinese shipyard had is a lower cost," he said, noting Chinese wages in the shipbuilding industry are "significantly lower" than in Canada. "I know that BC Ferries did evaluate their capability … and I believe they were comfortable that the shipyard could build the ships," McGreer said. McGreer said their quality from Chinese shipyards "is reasonably good," but construction needs to be "carefully" monitored. "I think some of the European (shipyards) do have a longer experience and a higher reputation for quality, but I think the Chinese yards do deliver a product with reasonable quality." Canadian shipbuilder Seaspan said in a statement after the request for proposals was issued last year that shipyards and their suppliers in Canada can't compete with countries that have low wages and lower safety and environmental standards. The B.C. Conservatives have called on Premier David Eby's government to cancel the contract that was announced on Tuesday, while accusing the premier of abandoning Canadian workers. Opposition transport critic Harman Bhangu said in a statement that the "deal is fully within the government's control" because BC Ferries board chair Joy MacPhail is a former NDP cabinet minister. 'Premier Eby put on a big show of not stopping in China on his trade mission to Asia,' Bhangu said. 'Then the NDP sends billions of dollars to a state-owned shipyard in China.' Transportation Minister Mike Farnworth said Tuesday that he raised concern with BC Ferries about the contract, but notes that the operator is an independent company that makes its own operational decisions. The provincial government is the sole preferred shareholder in BC Ferries and it receives public funding, and Williams said the purchase decision was not a government decision. When asked about Farnworth's comments, Williams said his organization is "politically agnostic" in reserving comment. "But I think that the most important thing to remember is that BC Ferries will have a team on site … in China, overseeing the project," he said. The four new major vessels will offer 52 per cent more space for passengers and 24 per cent more space for vehicle compared to the vessels they are replacing. The ferries will also feature diesel-battery hybrid propulsion systems that could fully run on electricity in the future, propellers that minimize underwater noise that impacts at-risk whales. The first of the four new vessels is scheduled to enter service in the spring of 2029. This report by The Canadian Press was first published June 11, 2025. Wolfgang Depner, The Canadian Press Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data