Music Festival Pay Later: Nearly 60% of Coachella Attendees Opt for Installment Payment Plans
Coachella Ticket Buying Craze: Installment Payments in High Demand
As the globally renowned Coachella music festival approaches, many attendees have actually secured their tickets using the “buy now, pay later” method. According to a report from Billboard, approximately 60% of general ticket buyers this year opted for the installment payment plan offered by Coachella. This service is particularly appealing to younger audiences and has become an important revenue source for the organizers.
A Small Service Fee Generates Millions
Attendees using the installment plan must pay a $41 activation fee. Although this fee seems minimal in relation to ticket prices (with three-day passes starting at $499, excluding other costs), it could lead to over $4 million in revenue for the organizers and ticketing companies, considering the projected 100,000 attendees.
Start Your Dream with Just $19.99
Coachella’s installment payment option allows fans to secure tickets for as low as $19.99, with the remaining balance to be paid in installments over the following months. Typically, payments are completed within three months from the lineup announcement in January until the festival’s opening. This “early bird reservation” strategy aligns perfectly with the spending habits of the younger generation.
Coachella Installments vs Traditional BNPL: What’s the Difference?
While various BNPL (Buy Now, Pay Later) services such as Klarna and Affirm are competing in the market, Coachella’s model is significantly different from these platforms.
BNPL services generally allow consumers to obtain goods or services first, followed by installment payments, typically without any service fees. However, Coachella’s payment plan requires participants to complete payments before the event begins. If a payment is missed, there is a 10-day grace period to catch up, or the order will be canceled; however, the organizers will provide a ticket credit for next year’s event.
How BNPL Differs from Credit Cards: 6 Key Differences
“Buy Now, Pay Later (BNPL)” and “credit cards” both seem to allow for “enjoying now, paying later,” but they have significant differences in application thresholds, interest structures, and credit impacts:
- Application Thresholds and Approval Methods
BNPL: Generally has lower thresholds, no credit checks required, and no credit history needed.
Credit Cards: Requires bank approval, including credit score, income, and job stability. - Payment Structure
BNPL: Commonly offers fixed installments (3, 6, 12 months) and sometimes provides 0% interest.
Credit Cards: Can be paid off in full or minimum payments can be made, leading to high-interest revolving credit. - Interest and Fees
BNPL: Promotes “0% interest,” but late payments incur penalties or service fees.
Credit Cards: If not paid in full, revolving interest often exceeds 10%, and annual fees or installment fees may apply. - Credit Impact
BNPL: Some platforms do not report to credit bureaus, while others do. Long-term use may help build credit.
Credit Cards: Always impacts credit records, and timely payments can improve credit scores. - Usage Flexibility
BNPL: Primarily seen in e-commerce or specific platforms, requiring prior selection of installment options.
Credit Cards: Can be used in almost all consumption scenarios, and installments can be arranged afterward or through promotional offers. - Consumption Risks
BNPL: Low thresholds may lead to overlooking total expenses, resulting in overspending.
Credit Cards: If mismanaged, revolving interest can quickly accumulate into significant debt.
Summary Table:
| Item | BNPL | Credit Card |
|---|---|---|
| Application Threshold | Low | Medium to High |
| Interest/Fees | Commonly 0% interest, possible penalties | High interest for unpaid balances |
| Installment Options | Fixed periods (e.g., 3, 6 months) | Can choose to pay in installments or revolving credit |
| Credit Impact | Depends on platform | Will affect credit record |
| Usage Flexibility | Limited to specific channels | Highly flexible |
| Consumption Risks | May overlook total amount | Can incur long-term interest burden |
From 18% to 60%, Coachella’s Installment Plan Popularity Soars
Looking back at when Coachella first introduced installment payments in 2009, only 18% of attendees utilized this option; today, that figure has grown to over 60%. Nevertheless, the organizers may face strong competition from free BNPL services in the future.
Ben Danner, a senior credit analyst at Javelin Strategy & Research, stated, “When BNPL offers 0% interest and no service fees, it is likely to replace those installment plans that require upfront fees. Particularly for events like Coachella that cater to younger audiences, the acceptance of BNPL is even higher.”
Not Just Coachella, Global Music Festivals Adopting Installment Payments
Coachella is not the only major music festival employing a BNPL-like strategy. The Bonnaroo music festival in Tennessee, USA, also allows attendees to pay in installments but requires a 50% down payment. The UK’s Bloodstock festival offers six installments of £33.18 each.
From the West Coast of the United States to the countryside of the UK, installment payments for festival tickets seem to be becoming the new norm. For organizers, this not only makes tickets more affordable for a larger audience but also helps secure revenue in advance, creating a win-win scenario for the future.
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