Payday Loans Market is expected to grow with a CAGR 4.1% from 2022 to 2028
As stated in our extensive report; providing insights on Type, Marital Status, and Customer Age; the Global Payday Loans Market accounted for USD 33.5 Billion in 2021.
Nowadays, Payday loans are gaining acceptance among the youth as young people today are experiencing more financial instability than any other generation. Moreover, it is estimated that one-third of all adults aged between 25 and 34 years have a student loan, which is the primary source of debt for members of Generation Z. this is compelling them to apply for loans as of easy and fast loan. Thus, increasing the adoption in turn, further driving the market growth over the forecast period. Furthermore, according to reports from Citizens Advice, up to 4 in 10 young adults will use a payday loan at some stage or another.
According to the California Department of Financial Protection and Innovation, in 2020, more than 1.1 million individual customers took out payday loans, a 30 percent decline from the 2019 total. Very nearly 61.8% of licensees reported serving customers who received government assistance. In addition, in 2020, Respondent licensees collected USD 250.8 million in fees on payday loans. Of that total, 66 percent – or $164.7 million – came from customers who made seven or more transactions during the year. In 2020, around 277,130 consumers took out single payday loans, compared to the previous year which is 212,003 in 2019. Characteristically, consumers took 10 or more payday loans than a single payday loan in the past. Electronic transfers accounted for 25.2 percent of payments, compared to 23.5 percent in 2019.
Additionally, the presence of a large number of payday lenders is further propelling the market growth over the forecast period. This is owing to several regulations supporting payday lenders. In addition, more payday lenders are looking to enter the market owing to the COVID-1 outbreak which has increased the demand as provide loans to financially unstable people. This, in turn, further propels the market growth over the forecast period.
North America holds the major share in the market owing to the penetration of new payday loans among the youth and improvement in the economy. Additionally, the presence of a large number of payday loan vendors in the region offers a lucrative opportunity for the market. Hence, contributing the market growth.
Some of the key players in the Global Payday Loans Market include Cashfloat, CashNetUSA, Creditstar, Lending Stream, Myjar, Silver Cloud Financial, Inc., THL Direct, Titlemax, TMG Loan Processing and others.
Browse the full Report - Payday Loans Market Size, Share & Trends Analysis Report by Type (Stroefornt Payday Loans, Online Payday Loans), by Marital Status (Married, Single, Others), by Customer Age (Less than 21, 21 to 30, 31 to 40, 41 to 50), by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)