ORLANDO, Fla. – “Need money NOW?” “Instant cash!” “No credit check!”

Not too long ago, your average payday lender was a strip mall storefront wedged between businesses like a laundromat, a pizzeria, a discount store, or a pawn shop. It’s a generalization evoking an image of a place you’ve probably seen or even walked into yourself.

But no longer - like just about everything else, payday lenders have gone digital, with trips to a physical storefront replaced by the convenience of an app. Download, agree to the terms, select, click, and in some cases, you can have cash in hand in just a few minutes.

Despite advances in tech, when it comes to the fundamental risks of a payday loan, to borrow from Led Zeppelin, “the song remains the same.”

Interest rates on payday loans are astronomical, and in the long run, borrowers are often better off steering clear. In fact, for too many borrowers, the new version of this old tune is set to repeat - only louder, harsher and more unforgiving.

While the storefronts may be gone, the business model hasn’t changed; it’s just found a new home on your smartphone.

According to Zion Market Research, the 2024 global payday loan market was worth about $5.37 billion and could grow to $7.23 billion by 2034 with younger borrowers (21-30) and single-income households relying the most on this finance option. Zion also expects significant growth in the online payday loan segment.

At its core, a payday loan is a short-term cash advance meant to tide borrowers over until their next paycheck. But these loans differ from a traditional bank or credit union loan in some key ways:

According to the Center for Financial Responsibility, in 2022, Americans took out more than 20 million payday loans totaling more than $8.6 billion.

Twelve states plus the District of Columbia ban payday loans altogether: Arizona, Colorado, D.C., Hawaii, Illinois, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Mexico, North Carolina, and South Dakota.