Economic Impact of the Payday Lending Industry

IHS Global Insight conducted a comprehensive study analyzing the economic impact of the payday loan industry nationally and in states with storefront locations. Findings illustrate "measurable and significant" economic benefits to local economies directly through employment, compensation and taxes, as well as through indirect and induced relationships with suppliers and other industries.

Full results of the study (PDF)
Review study highlights on a national level (PDF)
State-level economic impact data

Key Findings:

  • In addition to being a valuable source of credit for many consumers, the payday loan industry makes significant contributions to U.S. and state economies.

  • The industry contributed over $10 billion to the U.S. gross domestic product (GDP) in 2007.

  • The payday lending industry supports more than 155,000 jobs nationally¹, including 77,088 people directly employed in 23,586 jobs in storefront locations.²

  • The industry indirectly created another 28,453 jobs in supplier industries.

  • Payday loan store and supplier industry employees induced the creation of 50,039 jobs through the purchase of goods and services using earned wages.

Overall, the total labor income impact from the payday loan industry is $6.4 billion:

  • Through direct employment, payday loan stores contributed $2.9 billion in labor income, which translated to approximately $37,689 per store employee.³

  • Suppliers to the payday lending industry contributed $1.4 billion in labor income as an indirect result of the revenues generated by the payday loan industry.

  • $2.1 billion was generated from the wages of payday loan store employees and supplier industries' employees as they were spent in local economies.

  • The payday lending industry helped to generate more than $2.6 billion in federal, state, and local taxes in 2007.

1. Includes jobs in industries supplying input goods to the payday lending industry as well as jobs sustained due to the spending of wages in local economies by payday lending employees.
2. Direct employment includes only store employees and not those employed in corporate headquarters or parent organizations.
3. Labor income includes other benefits besides wages, such as employer paid health insurance benefits, and employer contributions to Social Security, Medicare, and 401K plans.

Connecting With Our Communities

Managing household finances can be a daunting task. However, by using solid budgeting and savings techniques, you can accomplish major financial goals. In the Customer Resource Center, CFSA offers a variety of payday advance resources that support and encourage responsible lending practices, and highlight the vital role of our members’ stores in neighborhoods near you.

Forgot Username or Password?


Thanks for visiting the CFSA Web site. CFSA values you as a member and is constantly seeking new ways to enhance your membership experience. As such, the information in this section is restricted to members only. If you are a CFSA member, please enter your username and password. If you have forgotten your login info, send an e-mail to

Forgot Username or Password?


Here you will find an aggregate of industry research, comprehensive data, and benchmarking tools from the short-term lending industry. They cover all payday advance business areas – consumer demographics, media hits, the latest policy initiatives, among others. Click here to access to the partner's resource library.

Forgot Username or Password?

For Our Policymakers

CFSA works at the federal, state, and local levels educate legislators and regulators about the role of payday advances in the broader financial services arena. This section provides resources for policymakers who believe in access to credit, want to preserve financial options and ensure balanced, substantive consumer protections. Click here to enter the Policymaker Resource Library.