This updated analysis examines the controversial “alternative economic services” sector – a $36 billion company composed of fragmented and loosely regulated check cashing and cash transfer services, cash advance services, pawn stores and rent-to-own stores. These retail and online outlets serve the “unbanked” section for the U.S. populace. Many companies are content to just accept the business enterprise of customers with spotty credit records who require cash fast, and who’ve been refused by banks–the 12+million households that choose to not make use of old-fashioned banking institutions.
There are about 12,000 check cashing shops, 14,000 pay day loan outlets, 800,000 money transfer agents, 11,000 pawn stores and 10,000 rent-to-own stores contending with this company today. Numerous outlets/services overlap-providing numerous solutions in the exact same website.
The analysis explores the consequences associated with the current pandemic and recession on operations and revenues, increased competition and interruption by brand new start-ups, industry consolidation, state and federal legislation, customer attitudes, plus the change to online digital distribution channels. Continue reading