Check Cashing & Payday Loan Services in the US - Industry Market Research Report

Check yourself: Falling inflationary pressures and increased fiscal flexibility from consumers are expected to harm the industry

Check Cashing & Payday Loan Services in the US

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 loans and other industry 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 payday loans and check cashing services, with industry revenue growing at a CAGR of 1.6% over the past five years, reaching an estimated $21.0 billion in 2023. This includes an estimated 2.3% spike in 2023 alone. Industry profit is also projected to increase due to a significant reduction in wage costs.

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.