NEW YORK–The buy now, pay later phenomenon has spread to the wedding industry, in what some are dubbing marry now, pay later.
Maroo, which launched in mid-2021, is seeing increasing popularity with a solution that gives couples the option to pay its network of vendors in installments over a 12-month period, according to a new report.
The average cost of a wedding in 2021 was $28,000, according to a nationwide survey of 15,000 couples conducted by the wedding planning and registry website the Knot, the New York Times reported. The trade group the Wedding Report, in a separate study that surveyed 1,699 individuals, determined that the average cost of a wedding last year was $27,000.
But when it comes to paying for an event, marrying couples have historically had few options beyond covering costs upfront or with conventional loans or credit cards, the Times added.
“There has been no innovation,” said Winnika, Maroo’s chief marketing officer, told the New York Times. “You have a lot of cool planning tools, checklists and photos for inspiration, but nothing for the painful process of paying for it.”
Many Should Say ‘I Don’t’
The personal finance writer Nicole Lapin, who holds an Accredited Investment Fiduciary certification from the Financial Industry Regulatory Authority, told the Times she advises couples to be cautious about the lure of installment plans.
She explained the pay-later aspect can lead users to take on more expenses than they can afford, which is why Lapin said such plans are best for financially stable people who are able to pay the full cost of a wedding upfront, but would rather keep cash liquid to use or invest in other ways.
“A wedding is a special and momentous occasion, but at the end of the day, it’s a party,” Lapin told the Times. “I don’t love overreaching financially for a party,” she added.
How Model Works
According to the report, Maroo works like this: When a couple hires a vendor in its network, that vendor can submit a bill through the platform. The couple then has the option to split up the bill’s total cost over the course of three, six or 12 months. Users can also opt for a more traditional plan and pay a 50% deposit upfront, with the balance paid in a second lump sum just before a wedding date, the Times reported.
The Times further reported that before setting up any payment plan, Maroo runs a credit check to determine whether users can fully pay off a bill in the agreed upon time. If a couple fails the credit check, they have two options: to renegotiate with a vendor to lower the cost of a bill, or to add contributors such as family members to the payment plan. Credit checks are run on contributors, too.
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