Fast cash: Consumers' recessionary struggles proved beneficial as more people sought industry services

The Check Cashing and Payday Loan Services industry accounts for nearly a quarter of financial services spending by underbanked consumers. Frozen lending markets caused by the recession expanded the underbanked client pool for industry operators, as a growing number of individuals were unable to access traditional financial product offerings. Over the five years to 2021, industry revenue is forecast to decrease. Despite decreasing poverty levels, rising competition from online vendors constricted industry revenue growth during the five-year period. Though competition from commercial banks that offer similar short-term, high-interest products is expected to fall, online vendors continue to pose a real more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
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Industry Threats & Opportunities

  • Growth experienced during the recession will be hindered by increasing regulations
  • The most dangerous regulatory trend for operators is limiting interest rates on products
  • The percentage of services conducted online is anticipated to remain elevated in the years ahead
  • Industry Report - Industry Key Buyers Chapter

    The Check Cashing and Payday Loan Services industry operates with a low level of market share concentration. The top four companies account for less an estimated 10.0% of total industry revenue in 2016. The majority of industry enterprises are small and serve their local or regional markets. Only a select few of the industry's largest companies, including Advance America and Cash America, have the capital necessary to operate thousands of establishments across domestic and international markets. The industry's low barriers to entry, particularly when compared to other financial services industries, allow new entrants to begin offering check cashing and payday loans with relative ease...purchase to read more.

    Additional Insights for the Check Cashing & Payday Loan Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Check Cashing & Payday Loan Services Industry are

  • Compliance with state and federal regulations
  • Franchising operations
  • Easy access for clients
  • IBISWorld analysts also discuss how external factors such as Poverty rate and Regulation in the Check Cashing & Payday Loan Services industry impact industry performance..

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    What is the Check Cashing & Payday Loan Services Industry?

    This industry cashes checks, drafts or money orders for the general public. Companies in this industry may also offer payday loans, installment loans and other financial services. Banks and firms that operate exclusively online are excluded.

    Industry Products
  • Payday loans for recurring expenses
  • Payday loans for unexpected emergencies/expenses
  • Payday loans for other reasons
  • Check cashing
  • Industry Activities
  • Providing payday loans for recurring expenses
  • Providing payday loans for unexpected emergencies/expenses
  • Providing check cashing services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Poverty rate
  • Regulation
  • National unemployment rate
  • External competition
  • Urban population

  • Current Performance
  • Market demographics
  • Regulatory trends
  • Expansion abroad and online
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive environment
  • Regulatory threats loom large
  • Table: Check Cashing & Payday Loan Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Check Cashing & Payday Loan Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Commercial Banking
  • Consumer Electronics Stores
  • Office Supply Stores

  • Products & Services
  • Payday loans for recurring expenses
  • Check cashing
  • Payday loans for unexpected emergencies/expenses
  • Payday loans for other reasons
  • Chart: Check Cashing & Payday Loan Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers earning under $15,000
  • Consumers earning $15,000 to $24,999
  • Consumers earning $30,000 to $39,999
  • Consumers earning $25,000 to $29,999
  • Consumers earning $50,000 to $74,999
  • Consumers earning $40,000 to $49,999
  • Consumers earning $75,000 to $99,999
  • Consumers earning $100,000+
  • Chart: Major Market Segmentation for the Check Cashing & Payday Loan Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Loan loss provisions
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Check Cashing & Payday Loan Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Check Cashing & Payday Loan Services Industry

  • Industry Globalization
  • Table: AARC LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Check Cashing & Payday Loan Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Check Cashing & Payday Loan Services Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Poverty Rate (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Annual Percentage Rate
  • Abbreviated APR, the rate at which loans are charged interest per year.
  • Brick-And-Mortar
  • A physical retail location that customers visit in person to perform transactions, as opposed to online.
  • Payday Loan
  • A small and short-term unsecured loan.
  • Underbanked
  • Consumers or businesses that have limited access to traditional financial services offered by commercial banks.
  • Why buy this report?

    IBISWorld’s industry research report on Check Cashing & Payday Loan Services contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Check Cashing & Payday Loan Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Check Cashing & Payday Loan Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Check Cashing & Payday Loan Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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