Have you ever wanted to go to a music festival, only to realize that a single ticket costs as much as a semester of your university tuition? Most people would probably skip it and move on. Well, more and more young people aren’t waiting. Instead, they are turning to “Buy Now, Pay Later” (BNPL) services to afford everything from groceries to concert tickets. No exaggeration – people are even financing their morning coffee.
BNPL is essentially a short-term loan that allows customers to divide payments into installments, which are usually interest-free, making them seem attractive and harmless to people on a tight budget. For example, a €30 dinner from Wolt can be split into six easy payments of €5. Sounds great, doesn’t it? But behind these harmless-looking payments often hides a growing pile of invisible debt.
Let’s take a look at one of the most iconic music festivals in the world – Coachella. According to Forbes, in 2025, around 60% of attendees bought tickets using BNPL plans. That’s not just a few broke students; that’s more than half of the attendees choosing to finance their weekend rather than pay upfront. And the crazy thing is that it doesn’t stop there. People also use BNPL for hotel bookings, outfits, and overpriced meals. This once-luxury experience is now a monthly payment plan that many will still be paying after the music stops.
Just a few years ago, BNPL was used mainly for expensive items that cost thousands, like a car, TV or computer, but now it is used for almost everything. In the U.S., the BNPL industry has exploded in popularity, with services like PayPal Credit, Klarna, and Affirm being integrated into everyday shopping platforms. However, in Europe implementation of BNPL has been slower, and the service isn’t as widespread. In Latvia, such services are not provided by Wolt or Bolt, at least not yet. But as global fintech companies expand, it’s only a matter of time before the trend reaches us.
On the surface, everything looks great, but if we take a closer look, there are many underlying problems that younger consumers don’t fully realize. The most obvious thing is that this encourages “emotional” spending, where we buy unnecessary items that we could easily live without. Let’s be honest, only a few people would finance a fridge, but a golden toilet is a completely different story. A 2024 Bloomberg study found that 54% of BNPL users admit that they are spending beyond their means, with 24% saying it’s “out of control”. Although it can be a smart budgeting tool, it often pressures people into buying more than they can afford.
With rising inflation and a looming cost-of-living crisis, people start to tighten up their spending habits. But instead, huge corporations are making it easier than ever to stretch your spending. BNPL breaks big purchases into smaller and more manageable payments, so making it easier to say yes even if you can’t really afford it.
This isn’t just a payment method, it’s a part of a bigger economic shift as Gen Z is prioritizing experience over saving. With a rapid increase in housing prices and overall market uncertainty, many young people don’t see themselves saving up for a property any time soon. So, living in the moment and paying it off later seems like a reasonable choice. But this “YOLO economy” mindset can turn into financial strain, and people are basically getting into debt over their dinner.
BNPL is not a bad financial tool, but in fact, when used wisely, it can help to manage cash flow, avoid high-interest debt, and make large purchases more manageable. But when it’s used to flex on social media or keep up with a lifestyle you cannot afford, it becomes dangerous. Music festivals might give you lifelong memories, but so can debt.
– Ricards Bisenieks