Coachella and the Risks of Buy Now, Pay Later

Coachella, an annual music and arts festival, might be known for music, fashion, and memorable performances, but this year, it also made headlines for how thousands of attendees paid to get in. As concertgoers flocked to the California desert, many weren’t just spending on tickets, they were financing them.

Approximately 60% of attendees used Buy Now, Pay Later (BNPL) services to cover the cost. While this increasingly popular alternative to credit cards might seem like a convenient way to enjoy a bucket-list event without the upfront cost, there are often hidden risks associated with the BNPL options.

What is Buy Now, Pay Later (BNPL)?

BNPL services offer consumers a way to split purchases into smaller, more manageable payments, often marketed as “interest-free.” These services are rapidly gaining popularity as alternatives to traditional credit cards. Platforms like Affirm, Klarna, and Afterpay are now embedded into checkout processes everywhere, from concert tickets to clothing and electronics.

So, what is the catch? The appeal of spreading payments out can mask the real cost. There are often hidden fees, higher interest rates that kick in after a promotional period, and severe penalties for delinquent payments.

Case in Point: Coachella’s BNPL Boom

At Coachella 2025, general admission tickets started at $599, but after additional fees, most attendees paid closer to $1,000, not including travel, hotels, etc. With a BNPL option requiring just $49.99 down and a $41 fee, many concertgoers opted in. This decision alone generated an estimated $4 million in BNPL-related fees, money that went not toward enhancing the experience, but to the event promoters and the payment service providers

Why Are So Many People Choosing BNPL?

There are two key drivers:

1. Financial Strain: Rising living costs, inflation, and high-interest rates have pushed many consumers to seek alternative financing options. With stretched budgets and maxed-out credit cards, some consumers feel BNPL is the only way they can access big-ticket items or experiences.
2. Psychological Appeal: BNPL taps into the allure of instant gratification, and many consumers look past the long-term financial consequences. Slick marketing and the ability to “own it now, pay later” can overshadow the reality of future payments, interest rates, and fees.

Should You Consider Using BNPL?

BNPL isn’t inherently bad. In fact, for consumers who manage their budgets carefully and can make on-time payments, it can be a helpful tool. However, problems arise when it’s used as a substitute for affordability.

Potential Pitfalls to Watch For:

• Late Fees: Miss a payment? You could face steep penalties.
• High Interest: Many BNPL programs shift to high-interest terms after the initial “interest-free” or promotional period.
• Credit Impact: While BNPL won’t always affect your credit score upfront, delinquent payments can.

How to Use BNPL Responsibly

• Read the Fine Print: Know exactly what you’re agreeing to, including fees, interest rates, and the consequences of missing a payment.
• Avoid Using It for Non-Essentials: If you wouldn’t put it on a credit card, don’t BNPL it either.
• Stick to a Budget: Only finance what you know you can repay within the set timeline.

Think Long-Term: Is It Worth It?

As the Buy Now Pay Later boom grows, it is important to think twice. The next time you’re tempted to use BNPL for concert tickets, trendy fashion, or tech gadgets, ask yourself: Is this helping or hurting my long-term financial goals? Just because you can split the cost doesn’t mean you should.

The bottom line? BNPL can be a useful tool, but it requires thoughtful planning and financial discipline. Before you click “Pay Later,” take a moment to consider whether it’s truly the right move for your future self. Try to strike a balance between your short-term desire to consume and your long-term financial goals and responsibilities. 

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