When the Coachella music festival begins, many attendees will have secured their tickets through an installment payment plan. Rather than using traditional buy now, pay later (BNPL) services, Coachella’s own payment plans have proven especially popular with the festival’s largely younger audience—and have become a notable source of revenue for organizers.

According to reporting by Billboard, around 60% of general admission ticket buyers for this year’s festival used Coachella’s payment plan. Enrolling in the plan comes with a $41 upfront fee. With nearly 100,000 attendees expected, that fee alone generates over $4 million, which is shared between the ticketing platform and the festival promoter.

Though $41 may seem small in comparison to the total cost—general admission for the three-day event starts at $499, plus fees—it allows buyers to begin with as little as $19.99, with the rest paid in monthly installments. These are typically spread across the three-month period between the January lineup announcement and the April festival.

Differences From Traditional BNPL

Coachella’s payment option differs from BNPL services like Klarna or Affirm, which typically allow customers to make interest-free payments after receiving a product or service—and often without any fees.

In contrast, Coachella’s plan requires that all payments be completed before the event. If an attendee misses a payment, they have 10 days to resolve the balance, or their order is canceled. However, they do receive a credit that can be applied to next year’s festival.

Facing a Competitive Landscape

Coachella first introduced installment plans in 2009, when just 18% of attendees used the option. That number has grown steadily. However, as BNPL options become more widespread, festival organizers could 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.”