Payday Loans Market to be Worth $6.8 Billion by 2030: Grand View Research, Inc.

News provided by

Dec 05, 2022, 07:18 ET

SAN FRANCISCO, Dec. 5, 2022 /PRNewswire/ -- The global payday loans market size is anticipated to reach USD 6.8 billion by 2030, registering a CAGR of 3.8% during the forecast period, according to a new report by Grand View Research, Inc. Demand for payday loans is likely to grow owing to advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and analytics being adopted by payday lenders.

Key Industry Insights & Findings from the report:

In terms of type, the storefront payday loans segment accounted for the maximum revenue share of 53.7% in 2021. This can be attributed to the presence of numerous payday lending stores. The online payday loans segment is likely to expand at the highest CAGR of 4.2% during the forecast period. This is due to the digitalization across the Banking, Financial Services, and Insurance (BFSI) sector.
Based on marital status, the single segment dominated the market with a share of 63.7% in 2021 and is also expected to expand at the highest CAGR of 4.0% during the forecast period. This can be attributed to the generally single source of income for the singles, divorced, and widowed parents which are more likely to use a payday loan as compared to married parents. The married segment accounted for a revenue share of 36.3% in 2021 and is expected to develop by a significant CAGR during the forecast period.
Based on customer age, the 31- 40 segments dominated the market with a share of 28.1% in 2021 and are expected to develop by a CAGR of 3.9% during the forecast period. This can be attributed to generally more financial responsibilities for the customers in this age group. The 21-30 segments are expected to develop the highest CAGR of 4.8% during the forecast period.
North America held the largest share of 31.0% in 2021 and is expected to retain its position throughout the forecast period. This can be attributed to the presence of numerous direct payday lenders in the region. Moreover, developed technology infrastructure is aiding the growth of the market in the region. The Asia Pacific region is anticipated to expand at the highest CAGR of more than 5.0% during the forecast period owing to the developing technology infrastructure.
In August 2021, Credit star Group's subsidiary, Credit star Czech s.r.o, launched Monefit in the Czech Republic. Customers can finance their everyday expenses and purchases with Monefit Credit Line and Monefit Split products. Customers can pay in three installments instead of paying large amounts at once without hidden fees or any interest. This would help Credit star to increase its market share in the region.

Read 122 page full market research report, "Payday Loans Market Size, Share & Trends Analysis Report By Type (Storefront Payday, Online Payday), By Marital Status (Married, Single), By Customer Age, By Region, And Segment Forecasts, 2022 - 2030", published by Grand View Research.

Payday Loans Market Growth & Trends

COVID-19 had a negative impact on the payday loans market. According to The Washington State Department of Financial Institution's, 2020 payday lending report, the total number of payday lending locations in Washington, U.S. reduced by 20.5% from 2019 to 2020. Moreover, the volume of payday loans also saw a reduction. People became cautious spenders owing to the economic slowdown caused by COVID-19. Moreover, some governments, such as the U.S. government, provided relief packages to help people during financially stressful condition, reducing demand for payday loans.

Many payday loan market players offer payday loans online with a simple online application process. It helps them improve the overall customer experience. Moreover, these players use advanced technologies such as AI/ML and analytics to improve the overall process. Some market players, such as the U.S.-based Speedy Cash and Title Max, have mobile applications through which their customers can manage their loans. U.S.-based Enova.com's Colossus platform is driven by AI/ML-enabled analytics.

Payday Loans Market Segmentation

Grand View Research has segmented the payday loans market based on type, marital status, customer age, and region:

Payday Loans Market - Type Outlook (Revenue, USD Million, 2017 - 2030)

Storefront Payday Loans
Online Payday Loans

Payday Loans Market - Marital Status Outlook (Revenue, USD Million, 2017 - 2030)

Married
Single

Payday Loans Market - Customer Age Outlook (Revenue, USD Million, 2017 - 2030)

Less than 21
21-30
31-40
41-50
More than 50

Payday Loans Market - Regional Outlook (Revenue, USD Million, 2017 - 2030)

North America

U.S.
Canada

Europe

U.K.
Germany
France
Italy

Asia Pacific

China
India
Japan
Australia

Latin America

Brazil
Mexico
Chile

Middle East & Africa

UAE
Saudi Arabia
South Africa

List of Key Players in Payday Loans Market

Title Max
Cash Money
Check City Online
Mr. Lender
Fast Loan UK
Speedy Cash
GAIN Credit
Cash float
Credit star Group
Mr. Payday

Check out more related studies published by Grand View Research:

Finance Lease Market - The global finance lease market size is expected to reach USD 324.40 billion by 2030, growing at a CAGR of 5.1% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The market is anticipated to be driven by several advantages offered by finance leasing over traditional borrowing methods, including higher margins, tax advantages, and inflation-friendly and secure investments. Furthermore, the massive demand for new commercial models and branded equipment across the globe has become one of the significant factors driving the growth.
Neobanking Market - The global neobanking market size is expected to reach USD 2,048.53 billion by 2030, growing at a CAGR of 53.4% from 2022 to 2030, according to a new report by Grand View Research, Inc. Factors, such as a faster process of loan approval and funding, compared to traditional banks, with low-interest rates via banking applications are driving the growth of the market. Increasing technological advancements, such as Artificial Intelligence (AI) and IoT, in online banking platforms, are also expected to boost the market growth over the forecast period. The rising popularity of mobile-based applications for making international fund transfers and online payments is also propelling the market growth. Governments in various countries are making efforts to promote internet services across rural areas.
Micro Lending Market - The global micro lending market size is expected to reach USD 86.82 billion by 2030, growing at a CAGR of 13.4% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The growth is anticipated to be driven by several advantages offered by micro lending to the loan providers, such as the easy accessibility to offer loans within and aboard the country and earning more interest rates compared to the traditional fixed deposit and other investments. Furthermore, the growing demand for micro lending by individuals through peer-to-peer lending platforms is another major factor driving the market's growth.

Browse through Grand View Research's Next Generation Technologies Industry Research Reports.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Contact:

Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: [email protected]
Web: https://www.grandviewresearch.com
Grand View Compass | Astra ESG Solutions
Follow Us: LinkedIn | Twitter