Coachella

Tens of thousands of music fans will descend on the California desert this weekend for the first of two iterations of the Coachella Music and Arts festival outside of Palm Springs, Calif.
Approximately 80,000 to 100,000 fans each weekend will have coughed up the $599 ticket price to see headliners Lady Gaga, Travis Scott, Green Day and Post Malone. But ticket price is often just the cost of entry — many of those fans will spend more than a $1,000 per weekend on lodging and cough up hundreds of dollars more for food, drinks and merchandise. It’s a substantial spend for any of the 20-somethings in Coachella’s target demographic. But festival organizers have increasingly helped finance their purchase through payment plan programs.

Approximately 60 percent of general admission ticket buyers at this year’s festival opted to use Coachella’s payment plan system, which requires as little as $49.99 up front for tickets to the annual concert. The desert festival isn’t alone — Lollapalooza, Electric Daisy Carnival and Rolling Loud all sell the majority of their tickets using some kind of payment plan system.

Trending on Billboard

Representatives at Goldenvoice, which puts on Coachella, declined to comment for this story. One source, who asked to remain anonymous because they weren’t authorized to speak to the media, told Billboard that payment plans have fundamentally changed how festivals are marketed to the public.

“Festivals are now marketing a cheap down payment as their main call to action,” the source says. “The messaging is $20 down gets you in the door, or $50 down gets you started. It’s no longer about the artists, or the festival lifestyle — the message is, ‘You can afford this if you act today.’”

The same source told Billboard it’s not uncommon for some fans to have four or five different festival payment plans hitting their accounts at one time. Typically, fans pay as little as $19.99 to get started on a payment plan that’s extended over a period of several months — three months generally for Coachella, since most buying happens after the lineup is announced, which until 2025 took place in early January. This year, fans who signed up before Jan. 25 had their payments split into three payments, with the last payment hitting a user’s account in March.

The system is different than those of popular fintech payment-plan firms like Klarna, Affirm and Sezzle, which pay out the vendor in full and reimburse themselves by collecting the remaining payments from buyers. These firms make money from merchant and processing fees they collect from vendors and, in some cases, interest payments charged to customers that go beyond the terms of their original payment plan. Because firms like Klarna and Affirm essentially grant buyers credit, and often run credit histories on their users, they are heavily regulated under a number of state and federal financial frameworks.

The payment systems used by festival promoters are administered by ticketing companies like AXS, Ticketmaster and Frontgate, and are offered as a service in exchange for the festival promoter’s business. These systems are not considered credit providers since there’s no third party fronting the vendor the full price of the transaction. Instead, the vendor is paid out over time, as each payment goes through.

Ticket buyers are charged a $41 fee for using Coachella’s payment plan, similar to what other festivals charge fans for the use of payment plans. The fee is equivalent to approximately eight percent of the ticket price, which is still far cheaper than what a fan might pay for financing a ticket on their credit card. The revenue generated from this fee is split between the ticketing company and the promoter.

While some have criticized festivals for using fees as a revenue generator, fest organizer Bob Sheehan with the California Roots Festival in Monterey, Calif. tells Billboard that payment plans “are a critical link between fan affordability and generating the revenue needed to finance a modern multiday festival.”

Sheehan estimates that 65 percent to 70 percent of his festival attendees use payment plans to pay for their tickets and adds “the entire system is built upon trust — trust that we will deliver the experience we promised and trust that our fans will make their payments on time.”

If Coachella attendees miss their scheduled payments — typically, the attempt to debit their account is declined for insufficient funds or having an expired credit card — they are given 10 days to bring their account current. If the 10th day passes and the payment is not received, then the order is cancelled and the fan is issued a credit that can be used towards next year’s festival.

“Credit expires 12 months from issuance,” Coachella officials explain on their website. “No exceptions.”

Expired monies and credits — often referred to as “breakage” in business — are governed by state law, though one source says the revenue generated from breakage is miniscule.

“Most defaults happen after the initial deposit is made on the first payment — it’s very rare that a fan will default on tickets after two payments have been made, so the revenue from breakage is very low,” explains one source familiar with how festivals operate their payment plans. “All of the incentives for the promoter are that the fan pay off their ticket in full and attend the event so they can spend money on beer and parking and merchandise.”