When the Coachella music festival kicks off, many attendees will have secured their tickets through an installment plan. Bypassing traditional buy now, pay later (BNPL) providers, Coachella’s payment plans have become especially popular with the festival’s mostly younger crowd—and a significant revenue source for its promoters.
According to reporting from Billboard, approximately 60% of general admission ticket buyers at this year’s festival opted to use Coachella’s payment plan. Buyers are charged a $41 upfront fee to enroll. With nearly 100,000 attendees expected, that fee alone generates more than $4 million, split between the ticketing company and the promoter.
In a sense, that $41 may seem minor compared to the overall cost—general admission tickets for the three-day festival started at $499, plus fees. The payment plan allows attendees to get started with as little as $19.99, with the balance spread out over several months. For Coachella, that generally means the three-month stretch between the January lineup announcement and the festival itself.
Differences With BNPL Plans
The use of these payment plans is soaring despite increased competition from traditional BNPL firms like Klarna and Affirm. With those providers, payments are generally made after the consumer has received their goods or services, and there are no fees.
Coachella attendees must complete their payments prior to the festival. If they miss a scheduled payment, they have 10 days to bring their account current, or their ticket order is cancelled. However, the attendee does receive a credit toward next year’s festival.
Feeling the Competition
Coachella first began offering installment plans in 2009, with just 18% of attendees opting in at the time. Since then, that number has grown significantly. However, with the rise of BNPL plans, promoters may soon face increased competition.
“BNPL plans offering 0% interest and no fee loans will usurp any prepay plans requiring an upfront fee,” said Ben Danner, Senior Analyst of Credit and Commercial at Javelin Strategy & Research. “Especially with a festival like Coachella, which attracts a younger demographic who are already using BNPL.”
Coachella is not the only high-priced music festival to offer fans a similar payment structure. Tennessee’s Bonnnaroo festival, scheduled for June, allows fans to pay in installments but requires 50% of the ticket price upfront. The British heavy metal festival Bloodstock also offers a payment plan, letting attendees pay in six installments of £33.18 each.
