As a contemporary artist, I often have the opportunity to interact directly with visitors at exhibitions. I’m always fascinated by their behavior and the conversations we share.
Last year, while visiting Japan with her family, an Australian woman purchased one of my artworks. At the time, she enthusiastically exclaimed, “I’m gonna buy this! I’m gonna use my art money!” Hearing this, I thought, “What’s Art Money? Maybe it’s her budget set aside for buying art.” Later, I looked into the term and discovered that “Art Money” is an actual system designed to support art purchases. In this post, I’d like to explore this fascinating system.
What is Art Money?
“Art Money” is an interest-free installment payment program designed to encourage art purchases. It’s primarily used in Australia, allowing buyers to pay for artworks in up to 10 installments. Its standout feature is that buyers don’t incur any interest or fees.
How is such an interest-free system sustainable? The secret lies in the fact that galleries and artists cover the costs. Specifically, they pay a fee to Art Money, enabling buyers to enjoy interest-free installment payments.
Note: Art Money is currently temporarily suspending new registrations and art purchases. Since it’s not available in Japan, I consider this as a reference to an innovative art purchase system.
Benefits for Buyers
- They can acquire artworks without needing to pay the full amount upfront.
- High-priced artworks become more accessible through installments.
- It reduces financial risks as there’s no interest.
Benefits for Galleries and Artists
- Buyers are less likely to hesitate due to financial concerns, potentially increasing sales.
- Artists and galleries receive the full payment upfront and aren’t exposed to payment risks.
Risk Management
If a buyer stops paying mid-way, it doesn’t affect the artist or gallery. Art Money handles collections and risk management, allowing artists and galleries to use the system with peace of mind.
Could it Be Introduced in Japan?
Japan currently lacks systems like Art Money. This may be because the culture of buying art is relatively new. However, the increasing popularity of subscription services and online galleries in Japan indicates a growing interest in making art more accessible. With this trend, a system like Art Money could find its place in Japan in the future.
Why Is the Service Temporarily Suspended? My Thoughts
Although the reasons for Art Money’s temporary suspension of new registrations and purchases haven’t been officially disclosed, several possibilities come to mind:
- Economic Factors
Global inflation and rising interest rates may have added pressure to the interest-free installment model. - Increased Payment Risks
A rise in payment delays or defaults could have impacted cash flow, necessitating a review of the service and strengthening risk management. - System Rebuilding or Strategic Overhaul
As Art Money grows, it may be in the process of developing new mechanisms to accommodate more users. Temporary suspension might be part of a long-term strategy.
I hope the system will continue after necessary adjustments, as it’s an excellent concept. However, it seems likely that managing the risks associated with unpaid installments posed a significant burden for Art Money.
Incidentally, the “Art Money” mentioned by the Australian woman who visited my exhibition likely referred to her budget for buying art, as Art Money isn’t available in Japan. This inquiry into her comment allowed me to learn about a fascinating system I hadn’t known before, and I wanted to share my findings here.
