Check Cashing & Payday Loan Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD5408Revenue
$21.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
75,909
Businesses
2,772
Wages
$X.Xbn
Check Cashing & Payday Loan Services in the US industry analysis
The Check Cashing and Payday Loan Services industry accounts for nearly one-quarter of financial services spending by underbanked consumers. Due to a strict regulatory environment and decreased demand from consumers amid the COVID-19 pandemic, industry revenue endured notable volatility in 2020 due to an increase in government-issued stimulus checks, rent freezes, mortgage forbearances and establishment closures, which lowered spending and lowered demand for loan services. Nonetheless, the reopening of the economy and rising inflationary pressures that followed the pandemic increased consumers' dependence on the industry's array of services. These volatile economic trends boosted demand for loan services, with revenue growing at a CAGR of 2.0% through the end of 2023, reaching an estimated $21.4 billion in 2023. This includes an estimated 5.7% decline in 2023 alone. Profit is also projected to increase due to a significant reduction in wage costs.
Trends and Insights
- Heightened inflationary pressures impact consumers' fiscal flexibility. As prices for core expenses such as rent and utilities increase, consumers have less available income, increasing demand for the industry.
- Elevated inflation fuels demand for payday loans to cover recurring expenses. Since the industry services a large chunk of consumers with low income, heightened inflationary pressures increased recurring costs, such as rent and utility bills.
- High population density benefits industry presence. Regions that have larger population centers will be more attractive to an industry servicer due to the presence of a diverse customer base.
- Establishing a favorable price point enhances industry advantage. If a servicer provides a more lucrative price option for its payday loans service, a new customer will be more interested in the service.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.0 % over the past five years, to reach an estimated $21.4bn in 2023.
Trends and Insights
The COVID-19 pandemic significantly altered consumer behavior
- During the COVID-19 pandemic, the industry struggled to gain traction, as consumers cut back on broader spending habits and allocated their disposable income toward mandatory spending, such as rental payments.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Long-term economic recovery is expected to harm revenue growth
- Despite the industry's success in leveraging economic instability following the COVID-19 pandemic, projected future economic growth will affect demand for the industry's services.
Biggest companies in the Check Cashing & Payday Loan Services in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
AARC LLC | 1,290.2 | 202.9 | 15.7 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Check Cashing & Payday Loan Services in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Payday loans for recurring expenses, Payday loans for unexpected emergencies/expenses and Payday loans for other reasons. Payday loans for recurring expenses is the largest segment of the Check Cashing & Payday Loan Services in the US.
Trends and Insights
Higher saving rates among consumers boost demand for payday loans for recurring expenses
- This product segment generates revenue from the sale of payday loans used by customers to pay recurring expenses, such as rent, mortgage payments and utility bills.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Loan Administration, Check Cashing & Other Services in the US
Complementors
- Real Estate Loans & Collateralized Debt in the US
- Loan Brokers in the US
- Credit Card Processing & Money Transferring in the US
International industries
- Loan Administration, Cheque Cashing & Other Services in Canada
Table of Contents
About this industry
Industry definition
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 companies that operate exclusively online are excluded.
What's included in this industry?
Providing payday loans for recurring expensesProviding payday loans for unexpected emergencies/expensesProviding check cashing servicesProviding payday loans for discretionary goods or purchasesCompanies
AARC LLCPurchase this report to view all 1 major companies in this industry.
Related Terms
BRICK-AND-MORTARANNUAL PERCENTAGE RATEPAYDAY LOANUNDERBANKEDIndustry Code
NAICS 52239 - Check Cashing & Payday Loan Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Heightened inflationary pressures impact consumers' fiscal flexibility. As prices for core expenses such as rent and utilities increase, consumers have less available income,...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Elevated inflation fuels demand for payday loans to cover recurring expenses. Since the industry services a large chunk of consumers with low income, heightened inflationary ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
High population density benefits industry presence. Regions that have larger population centers will be more attractive to an industry servicer due to the presence of a diver...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Establishing a favorable price point enhances industry advantage. If a servicer provides a more lucrative price option for its payday loans service, a new customer will be mo...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
One company owns more than a 5.0% share of the market. The marketability and name recognition of AARC LLC helps it secure a sizable chunk of the customer base within the indu...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of AARC LLC's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for AARC LLC, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Higher level of economic uncertainty improves demand for payday loans. As more consumers face economic hardship, there will be a higher demand for payday loans to cover cruci...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Negative economic growth benefits industry profitability. As economic conditions worsen, demand for payday loans from consumers to pay essential expenses increases.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Check Cashing & Payday Loan Services in the US industry in United States in 2024?
The market size of the Check Cashing & Payday Loan Services in the US industry in United States is $21.4bn in 2024.
How many businesses are there in the Check Cashing & Payday Loan Services in the US industry in 2023?
There are 2,772 businesses in the Check Cashing & Payday Loan Services in the US industry in United States, which has declined at a CAGR of 3.4 % between 2018 and 2023.
Has the Check Cashing & Payday Loan Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Check Cashing & Payday Loan Services in the US industry in United States has been growing at a CAGR of 2.0 % between 2018 and 2023.
What is the forecast growth of the Check Cashing & Payday Loan Services in the US industry in United States over the next 5 years?
Over the next five years, the Check Cashing & Payday Loan Services in the US industry in United States is expected to decline.
What are the biggest companies in the Check Cashing & Payday Loan Services in the US market in United States?
The biggest company operating in the Check Cashing & Payday Loan Services market in United States is AARC LLC
What does the Check Cashing & Payday Loan Services in the US in United States include?
Providing payday loans for recurring expenses and Providing payday loans for unexpected emergencies/expenses are part of the Check Cashing & Payday Loan Services in the US industry.
Which companies have the highest market share in the Check Cashing & Payday Loan Services in the US in United States?
The company holding the most market share in United States is AARC LLC.
How competitive is the Check Cashing & Payday Loan Services in the US industry in United States?
The level of competition is high and increasing in the Check Cashing & Payday Loan Services in the US industry in United States.
