Music Festival Pay Later PNPL! Nearly 60% of Coachella attendees choose installment payment for tickets.

During the Coachella ticket buying frenzy, installment payments are very popular.

With the globally anticipated Coachella music festival kicking off, many attendees have actually secured their tickets using the "buy now, pay later" method. According to a report from Billboard, about 60% of general ticket purchasers this year opted for the installment payment plan offered by Coachella, which is particularly appealing to younger audiences and has become an important source of revenue for the organizers.

A small transaction fee can generate millions in income.

Audiences using the installment plan need to pay a $41 activation fee. Although this fee seems trivial compared to the ticket price (a standard three-day pass starts at $499, not including other fees), with an expected 100,000 participants, this fee alone could bring in over $4 million for the organizers and ticketing companies.

As low as $19.99, your dream can be activated.

Coachella's installment payment option allows fans to secure tickets for as low as $19.99 and pay the remaining amount in installments over the next few months. Typically, payments are completed within three months from the announcement of the lineup in January until the festival begins, and this "early bird reservation" strategy perfectly aligns with the spending habits of the younger generation.

Coachella Installments vs Traditional BNPL: What’s the Difference?

Although there are many BNPL (Buy Now, Pay Later) services like Klarna and Affirm competing in the market, Coachella's model is still significantly different from these platforms.

BNPL generally involves obtaining goods or services first and then paying in installments, typically without service fees. However, Coachella's payment plan requires participants to complete payment before the event starts. If a payment is missed, there is a 10-day grace period to make up for it; otherwise, the order will be canceled, but the organizers will provide a voucher for next year's event tickets.

What are the differences between BNPL and credit cards? Check out the 6 major differences at once.

"Buy Now, Pay Later (BNPL)" and "credit cards" both sound like they allow for "enjoy now, pay later," but there are significant differences in application thresholds, interest rate structures, and credit impacts.

1. The application threshold and review methods are different.

BNPL: Usually has a lower threshold, does not require a credit check, and does not demand a credit history.

Credit Card: Subject to bank approval, including credit score, income, job stability, etc.

2. Payment Structure

BNPL: Common fixed installments (3, 6, 12 terms), sometimes offering 0 interest.

Credit Card: Can be paid off in full at once, or you can choose to make the minimum payment and then convert to a high-interest revolving credit.

3. Interest and Fees

BNPL: Focuses on "0% interest", but late payments will incur penalties or service fees.

Credit Card: If not paid in full, the revolving interest often exceeds 10%, and there may also be annual fees or installment charges.

4. Credit Impact

BNPL: Some platforms do not upload credit records, while others do. In the long term, this may help build credit.

Credit card: It will definitely affect your credit history, and on-time repayment is good for your credit score.

5. Use Flexibility

BNPL: Commonly seen in e-commerce or specific platforms, where installment options must be selected in advance.

Credit Card: It can be used in almost all consumption scenarios, and you can choose to pay in installments later or participate in installment promotion activities.

6. Consumption Risk

BNPL: The low threshold may lead people to overlook total expenditures, resulting in overspending.

Credit cards: If not managed properly, revolving interest can quickly accumulate into a large debt.

Summary Table Overview:

Project BNPL (Buy Now Pay Later) Credit Card Application Threshold Low Medium-High Interest/Fees Common 0% Interest, Possible Penalties High Interest if Not Cleared Installment Method Fixed Number of Installments (e.g. 3, 6 installments) Can be paid in installments or converted to revolving interest Credit Impact Depends on the Platform Definitely Affects Credit Record Usage Flexibility Limited to Specific Channels Highly Flexible Consumption Risks Easily Overlook Total Amount Easily Leads to Long-term Interest Burden

From 18% to 60%, Coachella installment plan popularity surges

When Coachella first introduced installment payments in 2009, only 18% of viewers used the feature; Today, the proportion has grown to more than 60%. Nevertheless, organizers may face strong challenges from the free BNPL service in the future.

Ben Danner, Senior Credit Analyst at Javelin Strategy & Research, said: "When BNPL offers 0% interest and fee-free options, it is likely to replace those installment plans that require upfront fees. Especially for young-based activities like Coachella, BNPL is more receptive."

Not just Coachella, music festivals around the world are incorporating installment payments.

Coachella is not the only large music festival that employs a BNPL-like strategy. The Bonnaroo Music Festival in Tennessee, USA, also allows attendees to pay for tickets in installments but requires a down payment of 50% of the ticket price. The UK heavy metal festival Bloodstock offers six installments of £33.18 each.

From the West Coast of the United States to the countryside of the United Kingdom, installment payments for music festival tickets seem to have become the new norm. For organizers, it not only makes it more affordable for more people, but also allows them to secure income in advance during the presale phase, making this a win-win model for the future.

This article discusses the Pay Later Payment (PNPL) for music festivals! Nearly 60% of Coachella attendees choose to pay for tickets in installments, as first reported by Chain News ABMedia.