$21.4bn
$X.Xbn
75,909
2,772
$X.Xbn
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.
Industry revenue has grown at a CAGR of 2.0 % over the past five years, to reach an estimated $21.4bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
AARC LLC | 1,290.2 | 202.9 | 15.7 |
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Check Cashing & Payday Loan Services in the US
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.
Higher saving rates among consumers boost demand for payday loans for recurring expenses
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.
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NAICS 52239 - Check Cashing & Payday Loan Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Heightened inflationary pressures impact consumers' fiscal flexibility. As prices for core expenses such as rent and utilities increase, consumers have less available income,...
Learn about an industry's products and services, markets and trends in international trade.
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 ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
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...
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.
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...
Learn about the performance of the top companies in the industry.
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...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
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...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Negative economic growth benefits industry profitability. As economic conditions worsen, demand for payday loans from consumers to pay essential expenses increases.
Including values and annual change:
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Key data sources in the US include:
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:
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The market size of the Check Cashing & Payday Loan Services in the US industry in United States is $21.4bn in 2024.
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.
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.
Over the next five years, the Check Cashing & Payday Loan Services in the US industry in United States is expected to decline.
The biggest company operating in the Check Cashing & Payday Loan Services market in United States is AARC LLC
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.
The company holding the most market share in United States is AARC LLC.
The level of competition is high and increasing in the Check Cashing & Payday Loan Services in the US industry in United States.