Check Cashing & Payday Loan Services
The Check Cashing and Payday Loan Services industry is characterized by a low level of market share concentration. The top four companies in the industry are expected to account for less than 10.0% of total industry revenue in 2019. Suppliers for this industry range in the several hundred. AARC LLC is the leading provider of payday loan services. DFC Global Corp. and FirstCash Inc. capture smaller shares of the market.
Ownership structure explained
· AARC LLC does business as Advance America, a wholly owned subsidiary of Grupo Elektra. It offers money transfers through MoneyGram and Visa prepaid cards.
· FirstCash Inc. was formed by the merger of First Cash Financial Services Inc. and Cash America International Inc. in 2016.
· DFC Global Corp. does business as Money Mart domestically and operates The Check Cashing Store brand.
Fragmented industry landscape discourages operators
· The industry is characterized by numerous small-to-medium localized operators. Barriers to entry vary on a state-by-state basis since some states have more stringent regulations on payday loan services than others. In turn, the variation of regulations on the state level largely discourages larger operations. While state laws largely deter companies from operating nationally, some of the top companies have widened their presence.
Competitive landscape encourages growth
· The general trend towards online and mobile banking has brought about the popularity of online lending services. In particular, underbanked consumers turn to industries such as the Peer-to-Peer Lending Platforms industry for similar services. Nevertheless, payday lenders have also taken advantage of the online banking trend by operating their own online lending operations.
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.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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