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The payday loans market size is expected to increase to USD 8.4 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.34%This report provides a comprehensive analysis of the payday loans market, focusing on the following key segmentations:
This comprehensive payday loans market research report offers valuable insights into the post-COVID-19 impact on the market, equipping businesses with the necessary information to evaluate their business strategies and make informed decisions. The report provides detailed analysis of market segmentation, regional variations, and emerging trends, empowering companies to gain a comprehensive understanding of the payday loans market and develop effective strategies for sustained growth.
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The growing awareness regarding the payday loan among the youth is notably driving the payday loans market growth, although factors such as payday loans are considered predatory, which may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the payday loans industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Payday Loans Market Driver
The growing awareness regarding the payday loan among the youth is one of the key drivers supporting the payday loans market growth. It is anticipated that one-third of people aged 25 to 34 have a college loan, which is the largest source of debt for Generation Z members. The debt forces individuals to seek for payday loans to obtain quick and simple loans, fueling fintech industry development. Also, with the growing cost of living throughout the world, students with college loans are under enormous pressure to repay their debts, and most young people are turning to the online payday loans market, which will fuel the growth of the market in focus during the forecast period.
Key Payday Loans Market Trends
The rising number of payday lenders is one of the key payday loans market trends contributing to the market growth. Payday lenders are gaining prominence, and more lenders are following them and entering the financial sector as it is so simple to start a lending business such as loans. Furthermore, several payday lenders provide triple-digit balloon payment loans and expand their offerings to include installment loans for shorter terms which will propel the fintech business. Furthermore, owing to numerous policies that promote payday lenders, more lenders were prepared to enter the global payday loans market during the pandemic to provide loans to financially insecure people. Such factors are propelling the growth of the payday lenders market in focus during the forecast period.
Key Payday Loans Market Challenge
Payday loans are considered predatory, which is one of the factors hampering the payday loans market growth. Primarily, payday loans are viewed as predatory as they target those individuals with low incomes and poor credit. Moreover, there are several other vendors and financial institutions that do the same thing. However, still payday lenders have a negative reputation for aggressively chasing unpaid loans in the past. Thus, such a reputation may limit the payday loans market growth during the forecast period.
This payday loans market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
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42% of the market's growth will originate from North America during the forecast period. The US is the key market for the payday loans market in North America. Market growth in this region will be slower than the growth of the market in APAC.
The increasing awareness about payday loans among the youth and the aggressive adoption of the latest and advanced technologies by payday lenders will facilitate the payday loans market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 negatively impacted the regional market growth. However, in 2021, the initiation of COVID-19 vaccination drives resulted in the reopening of several industries such as retail, manufacturing, IT, and several others. Owing to such factors, the demand for payday loans is expected to increase and fuel the growth of the market in focus during the forecast period.
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The payday loans market share growth by the storefront payday loans segment will be significant during the forecast period. The storefront payday loans eliminate all the extra costs, such as processing costs. The key reason for the adoption of storefront payday loans by customers is the customer dealing directly with the payday lender, where the customer is assured that the lender abides by your state's payday lending regulations. Therefore, the adoption of storefront payday loans is expected to witness growth and contribute to the growth of the global payday loans market during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the payday loans market size and actionable market insights on post COVID-19 impact on each segment.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the payday loans market encompasses successful business strategies deployed by the key vendors. The payday loans market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The payday loans market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Payday Loans Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.34% |
Market growth 2022-2026 |
$ 8.4 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.58 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
AARC LLC, Axis Bank Ltd., Citigroup Inc., Creditstar Group AS, CS SALES LLC, DJS UK Ltd., Enova International Inc., FloatMe Corp., GAIN Credit Inc., GC DataTech Ltd., Kotak Mahindra Bank Ltd., KrazyBee Services Pvt. Ltd., Maxed Up Media Ltd., Payday America Inc., Payday Loans Ltd., PDL Finance Ltd., Speedy Cash, Upward Finance Ltd., Western Circle Ltd., and Whizdm Innovations Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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