Payday loans are short-term loans that you can take out when you need money. They are not to be confused with a credit card cash advance, which is a form of borrowing from your credit card company.
These kind of loans usually have lower interest rates, and longer repayment periods than other types of unsecured loans. Such as personal or car loans.
A longer phrase like guaranteed payday loans no matter what is often used to refer to the more popular type of short-term loans. Which does not require a bank.
This type of payday loan is also called “payday cash advance”, or “check advance”, and they are often advertised as “fax-less loans” or “no credit check” loans as well.
Although this industry has been around since the great depression, the question is, how has it been affected by the pandemic.
Present State of The Payday Loan Business
Payday lenders are in the business of money. They make money by lending it to everyday folks. The more money they have in their possession, the better it is for them. However, when a global even strikes that hurts the economy, payday loan agencies are not immune to its effects.
The pandemic has affected fast cash lender in many ways. For instance, if people stop coming into lending agencies or even going online, this will affect their business as well.
Moreover, if people are unable to get their salaries deposited into their account because of a pandemic-related shutdown of public services, then all hell will break loose.
However, the future doesn’t look that gloomy. Things are moving along just fine and although in the beginning of Covid-19 there was some panic, it all changed.
Thanks to Fintech.
What is Fintech
Fintech is the use of technology in the financial industry. It has been one of the most disruptive forces in recent years. Especially during Covid-19.
The term fintech was first used in 1999 by a group of people who met at Stanford University to discuss how to use technology to improve finance. The group included David Warsh, a journalist and author, and Richard Kovacevich, a former CEO of Wells Fargo.
In recent years, there’s been an explosion in new Fintech companies that are using software and data analytics to transform banking, and other financial services. In 2016, more than $20 billion was invested into Fintech globally with over 2,000 new companies created since 2008.
Bottom line, Fintech is digital, and this has cut down payment processing costs dramatically,
Let’s have a look at some of these innovative powerhouses.
Square
Square is a company that provides financial services to small businesses. It is headquartered in San Francisco, California.
Square was founded in 2009 by Jack Dorsey, Jim McKelvey, and Jim Patterson. The company’s original product was a credit card reader that attaches to the headphone jack of an iPhone. Square has since expanded its product line to include other small business services such as payroll, inventory management, and maybe payday loan services as well.
In 2013, Square launched Square Capital, which offers merchant cash advances to merchants who provide an interest rate of 15% or less on their outstanding balances. In 2014, the company released Square Register for iPad®, which allows merchants to process credit card transactions on their iPad® device instead of using a traditional cash register or POS system at their business location.
KOHO Finance
Koho is an innovative, data-driven finance company that provides a personalized digital banking experience. Koho is headquartered in Vancouver, Canada with offices in Toronto, Montreal and Halifax.
Koho’s goal is to create a bank that people love to use. This means building an experience that is simple, personal and transparent. One way Koho achieves this goal is through their use of technology.
They are always looking for new ways to make banking easier for their customers by using technology to break down barriers between them and the customer.
For example, they have developed a voice assistant called “Koho” which helps customers with basic banking tasks like transferring money or paying bills with just one sentence or two clicks.
Venmo
Venmo is a mobile payment service that allows money to be sent from one person to another. It is currently available in the United States, Canada, Australia, and the United Kingdom.
This is a mobile payment service which allows money to be sent from one person to another.
Venmo is currently available in the United States, Canada, Australia and the United Kingdom.
The company was founded by two friends who wanted a way to pay each other back for things like rent and food. The company was originally called “Braintree Payments”. In 2012 it was acquired by PayPal for $800 million dollars.
2022 and Beyond
The future of Fintech and Payday loan lending is up in arms. It is clear that the technology will continue to grow and evolve. In fact, it is estimated that by 2020, there will be 2 billion smartphone users. This is a huge number and it means that the future of FinTech will be mobile-centric.
One thing we know for sure though, is that this technology will continue to grow and evolve over time.
Which means . . . you better get used to it.
