Buy Now, Pay Later takes over Coachella as festival costs soar

[UNITED STATES] As Coachella 2025 unfolds under the scorching desert sun, a notable trend is emerging among festivalgoers: the widespread adoption of 'Buy Now, Pay Later' (BNPL) services. With general admission tickets priced at $649 and VIP passes at $1,399, many attendees are turning to BNPL options to manage the financial burden, reflecting broader concerns about affordability and financial accessibility in the live music industry.​

The appeal of BNPL services is particularly strong among younger demographics, with Gen Z and Millennials accounting for nearly 80% of users at this year’s festival. This aligns with broader financial trends, as a recent Federal Reserve study found that 45% of adults under 30 have used BNPL for discretionary spending, compared to just 12% of those over 50. The generational divide underscores shifting attitudes toward debt and credit, with younger consumers favoring short-term, interest-free options over traditional credit cards.

BNPL Usage on the Rise

Recent reports indicate that approximately 60% of Coachella's general admission attendees are utilizing BNPL services, a significant increase from just 18% in 2009. This surge highlights the growing reliance on alternative payment methods as traditional credit options become less accessible or appealing to younger consumers.

Behind the scenes, BNPL providers are capitalizing on the festival’s high-energy atmosphere by partnering with vendors and sponsors to offer exclusive, time-sensitive promotions. For example, some services are offering "zero-fee" installment plans for food, merchandise, and even travel packages, further embedding BNPL into the Coachella experience. These partnerships blur the lines between convenience and consumerism, raising questions about how much spending is driven by FOMO (fear of missing out) rather than financial prudence.

While BNPL services offer the allure of deferred payments, experts caution that they can lead to financial strain if not managed carefully. The ease of splitting payments into installments may encourage overspending, potentially resulting in accumulated debt and financial stress for consumers who overextend their repayment capabilities.

Adding to the complexity, some BNPL providers have begun reporting missed payments to credit bureaus—a relatively new practice that could impact users’ credit scores. Unlike traditional credit cards, which often offer grace periods, BNPL plans typically require automatic withdrawals, leaving little room for error. Financial advisors warn that without clear budgeting, festivalgoers could face not only short-term cash flow issues but also longer-term credit repercussions.

Industry Response and Regulatory Considerations

The increasing prevalence of BNPL usage at events like Coachella has prompted discussions about the need for regulation in the BNPL sector. Consumer advocates emphasize the importance of transparency, responsible lending practices, and consumer education to mitigate potential financial risks associated with these payment options.

Internationally, regulators are already taking action. Australia and the U.K. have introduced stricter BNPL oversight, including mandatory affordability checks and dispute resolution protocols. In the U.S., the Consumer Financial Protection Bureau (CFPB) is expected to release new guidelines later this year, which could reshape how these services operate at large-scale events. The live music industry, meanwhile, is watching closely, as any regulatory changes could influence ticket pricing and payment structures in the future.

The rise of BNPL services at Coachella underscores a shift in consumer behavior towards more flexible payment methods in the face of escalating event costs. While these services provide immediate financial relief, they also necessitate careful consideration and responsible usage to avoid long-term financial repercussions. As the live music industry continues to evolve, the integration of BNPL options reflects broader trends in consumer finance and the ongoing dialogue about affordability and access in entertainment.