Ticketmaster is one of the world’s largest ticket sales and distribution companies. They sell tickets for concert, sports, and theater events on behalf of event organizers. In recent years, Ticketmaster has adopted new payment options like buy now pay later to give customers more flexibility in how they pay for tickets.
What is buy now pay later?
Buy now pay later (BNPL) is a type of short-term financing that allows customers to make purchases and pay for them over an installment plan, typically with no interest or fees. Instead of paying the full amount upfront, customers can split the cost into multiple smaller payments made over a period of weeks or months. This allows the customer to receive the product or service immediately while spreading out the payments over time.
BNPL has become an increasingly popular payment method, especially among younger demographics. It offers convenience and flexibility compared to paying the full amount immediately. BNPL also helps consumers make larger purchases that may be unaffordable if paid all at once.
How does Ticketmaster offer BNPL?
Ticketmaster currently offers BNPL through a partnership with two different fintech companies:
Affirm
Affirm is one of the largest and most well-known BNPL providers. They partner with retailers to offer installment loans to customers at the point of sale. Ticketmaster integrated Affirm as a payment option in 2020.
When checking out tickets on Ticketmaster, customers can choose Affirm as their payment method. They are then directed to the Affirm website to complete a soft credit check. If approved, the customer can split their ticket purchase into 3, 6, or 12 monthly payments with 0% APR. Affirm clearly discloses any late fees that may apply if payments are missed.
Sezzle
Sezzle is another BNPL provider that Ticketmaster works with. Similar to Affirm, Sezzle allows customers to split ticket purchases across four interest-free payments made every two weeks.
To use Sezzle on Ticketmaster, customers add a Sezzle virtual card to their Ticketmaster account. This card has a credit limit set by Sezzle after a soft credit inquiry. At checkout, customers can use their Sezzle virtual card to pay, dividing the total ticket cost into four installments.
What events can you use BNPL for?
Ticketmaster allows customers to use Affirm or Sezzle BNPL payment options for most events and ticket types on their platform. This includes:
- Concert tickets – for individual shows or festival passes
- Sports tickets – for leagues like MLB, NBA, NHL, NFL, MLS
- Theater shows – Broadway, West End, and other theatrical performances
- Comedy shows
- Family events
The option to use BNPL will appear during checkout if the event and ticket type are eligible. Customers can see if Affirm or Sezzle is available as a payment method before getting to the end of the purchase flow.
Pros of using BNPL on Ticketmaster
There are several advantages to using BNPL payment options for Ticketmaster purchases:
More flexible payments
BNPL allows customers to spread out ticket costs over time instead of paying 100% upfront. This can make expensive tickets more affordable.
Avoid interest and fees
Unlike credit cards or personal loans, Ticketmaster’s BNPL partners Affirm and Sezzle do not charge interest or fees for installment plans (unless a payment is missed).
Build credit
Responsibly using BNPL and making on-time payments can help younger consumers build their credit history.
Access to events sooner
With BNPL, customers can order tickets immediately instead of having to save up the full amount first. This allows quicker access to in-demand events.
Simpler to qualify
Ticketmaster’s BNPL providers use simple soft credit checks. These do not impact credit scores. Approval rates are often higher than traditional credit.
Cons of using BNPL on Ticketmaster
However, there are also some potential downsides to consider with Ticketmaster’s BNPL payment options:
Missed payment fees
If a customer misses an installment payment, they may be charged high penalty fees by the BNPL lender (up to $35 per missed payment). This can add significant costs.
Overspending risk
The ease of BNPL can lead some customers to overspend. If you take on too many installment plans, it can become difficult to manage.
Credit impact if late
While on-time BNPL payments help credit, late or missed payments will be reported to credit bureaus and negatively impact your score.
Limited purchase protection
BNPL transactions typically do not include the same purchase protections as credit cards, such as extended warranties or insurance. Customers have less recourse in case of issues.
Long-term costs
If installment loans are repeatedly used for purchases customers cannot afford upfront, overall long-term costs can be higher than paying in cash.
Tips for using BNPL responsibly on Ticketmaster
If you plan to use Affirm, Sezzle, or other BNPL plans on Ticketmaster, here are some tips to stay financially responsible:
- Carefully consider if you can genuinely afford the installment payments. Don’t overextend yourself.
- Understand late fees and set payment due date reminders to avoid missing payments.
- Read terms carefully so you know the total costs if you complete or default on the payment plan.
- Use BNPL for one-time planned expenses, not routine entertainment purchases.
- Build an emergency fund in case your income is disrupted and you cannot make payments.
- Review your credit report regularly to ensure on-time BNPL payments are being reported.
The future of BNPL for event tickets
The use of BNPL is expected to keep growing for event ticket purchases. By partnering with Affirm and Sezzle, Ticketmaster is ahead of competitors in offering flexible payment options.
According to a 2022 PYMNTS survey, 75% of event attendees are interested in using BNPL plans to purchase tickets. And 48% said BNPL would motivate them to attend more events.
As younger demographics like Millennials and Gen Z gain spending power, their preference for installment payments over credit cards will shape the future of the events industry. Venues, festivals, sports leagues, and other event organizers may need to consider integrating BNPL if they want to cater to evolving consumer payment behavior.
The convenience of spreading out ticket costs is attractive to cash-strapped consumers even if they have access to credit cards. Combined with the rise of mobile wallets and messaging commerce, BNPL has the potential to fundamentally transform how fans pay to see their favorite sports teams, artists, and shows.
Conclusion
Buy now pay later programs through Affirm and Sezzle give Ticketmaster customers more flexibility in financing event ticket purchases. Instead of paying upfront, fans can divide costs into interest-free monthly installments. This allows broader access to live experiences. However, BNPL also comes with risks if customers take on too much installment debt or make late payments. When used deliberately, though, it can be a useful payment option for budgeting ticket costs over time. With digital natives leading the adoption of installment payments, expect BNPL at Ticketmaster and across the event industry only to expand.