The surge in cosmetic procedures among consumers is prompting a parallel rise in financing options through “Buy Now, Pay Later” (BNPL) firms. These financial services have adapted to the cosmetic surgery market, attracting borrowers eager to enhance their appearance without the immediate financial burden.
Consider Camille Weston, a 22-year-old from Salt Lake City, who opted for a breast augmentation priced at $7,000—a procedure not covered by her insurance. To fund this enhancement, she turned to a lender offering an interest-free credit line for six months. This strategic decision was not merely for vanity; improving her appearance could significantly impact her social media agency, which she runs with her sister. Successfully paying off her debt before interest accrued exemplifies how consumers are leveraging BNPL options for cosmetic work.
This trend is indicative of a broader cultural shift where cosmetic treatments such as tummy tucks and lip fillers are becoming mainstream. Social media influencers are at the forefront, showcasing their results and motivating fans to consider financing solutions for similar treatments. According to Shawna Chrisman, founder of Destination Aesthetics Medical Spa in California, many clients are financially responsible individuals seeking higher-priced packages that offer a more comprehensive treatment experience.
As the demand for cosmetic procedures grows, so does the allure for Wall Street. The American Society of Plastic Surgeons reports that significant procedures like liposuction and buccal fat pad removal increased by 7 percent from 2022 to 2023. Injections, particularly Botox, gained a 9 percent uptick, with over 25 million minimally invasive procedures performed annually. The high price tags associated with these treatments bring new opportunities for financing, appealing to investors eager to capitalize on a well-defined consumer segment.
This potential was underscored earlier this year when bankers bundled $250 million worth of cosmetic procedure loans into a bond. Investor interest was so high that the deal was expanded to $400 million. These bonds attracted investors due to their backing by a financially stable consumer base—individuals who can afford ongoing procedures, such as Botox that requires repeat use every few months.
Cherry Technologies, a notable player in healthcare-focused BNPL solutions, has successfully positioned itself in this niche. The company specializes in offering flexible payment options for cosmetic treatments ranging from $200 to $10,000, making elective procedures more accessible for consumers eager to enhance their beauty.
Significantly, Cherry’s recent success in entering the financial markets marks a pivotal development in the cosmetic surgery financing landscape. As cosmetic procedure prices continue to rise—such as the average cost of breast augmentation increasing by 13 percent and Brazilian butt lifts soaring by 19 percent—financing emerges as a necessary tool for many consumers. Those unable to immediately afford such costs seek alternative methods, including seeking loans or even turning to extreme measures like surrogate motherhood to fund their procedures.
Bree Cruz, a 32-year-old stay-at-home mom from California, shared her journey, financing her tummy tuck and breast augmentation partly through serving as a surrogate. With a renewed sense of self, she expressed, “This gave me a lot more confidence. It just made me feel like myself again.” Such perspectives highlight how much cosmetic procedures can contribute to personal well-being and confidence.
In this evolving landscape, clinics offer various financing options, from partnerships involving firms like Cherry and Allergan to traditional healthcare credit cards such as CareCredit. According to Chrisman’s experience, sales through CareCredit reached approximately $771,000 in the past year, a substantial increase from $474,000 the previous year, indicating strong consumer interest in financing options.
However, the rise of BNPL firms in cosmetic procedures is not without caution. Critics raise concerns that these financing options may push consumers into spending on unnecessary services they cannot afford. Research from the Federal Reserve Bank of New York suggests that BNPL plans are frequently utilized by individuals in precarious financial situations, including those with lower incomes or credit scores.
Moreover, while the promotional periods for such financing options may appear attractive, consumers must navigate the significantly higher interest rates that kick in if they fail to pay off their balances. For example, CareCredit’s Annual Percentage Rate (APR) can soar to 32.99 percent after initial low or zero-interest promotional offers expire. Such high stakes mean that while BNPL options may increase access to cosmetic procedures, they also come with the risk of consumer debt.
Worth noting is the experience of Lisa Homsy, a content creator from Canada. Instead of financing her procedure locally, she traveled to Turkey for a breast augmentation combined with a week-long hotel stay—all for about $6,000, a fraction of what she was quoted elsewhere. Her journey, inspired through social media, underscores how consumers actively seek out both affordability and quality in their cosmetic endeavors.
In conclusion, the plastic surgery boom, now complemented by BNPL financing options, showcases how financial innovation can align with consumer desires for aesthetic enhancements. Yet, in the rush to improve appearances, both consumers and financiers must remain mindful of the potential longer-term financial consequences associated with such choices.
