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The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry

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This updated analysis by Marketdata examines the controversial but growing “alternative financial services” sector — a $27 billion business comprised of loosely regulated check cashing, payday loan, money transfer and payday loan services. These outlets serve 35% of the U.S. population. Many companies are happy to accept the business of consumers with spotty credit records who have been rejected by banks--the 12 million “unbanked” households that choose not to use traditional banks.Explosive growth had taken place in the payday loan business, but they have come under heavy scrutiny. Critics say these services gouge consumers with high fees and interest rates, but they do provide more convenient hours, less red tape, easier credit, and most customers don’t seem to complain. There are 13,000 check cashing outlets, 11,000 pawn shops, 25,000 payday loan stores and 467,000+ money transfer agents competing for this business today. Many outlets/services overlap—providing multiple services at the same site. The study explores why growth at check cashers and pawn shops is meager, and the effects of the economic slowdown.This new study by Marketdata examines the nature of the business, reasons for the growth of non-bank services, immigration trends, national receipts/growth from 1999-2007, 2008 to 2013 forecasts, average store revenues, customer demographics, key industry trends, federal/state industry regulation/fee caps, self-service check cashing machines, profit margins, franchising, gold prices, global remittance trends, consumer debt levels, reasons for the industry’s past negative image, and more. Findings of research studies by: Fannie Mae, Georgetown University, FISCA, Federal Reserve Board, brokerage analysts, Natl. Check Casher’s Assn., The World Bank, INS, Natl. Pawnbroker’s Assn., U.S. Census Bureau, FDIC, and more.This study is believed to be one of the few in-depth publicly available business analyses that exists of this market. 13 in-depth company profiles (with 2005-2007 financials) are provided for: ACE Cash Express, Check Into Cash, Dollar Financial, Western Union, Moneygram, Ria Financial, Cash America, EZCORP, First Cash Financial, Advance America, Check Into Cash, CNG Financial, and QC Holdings.  

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The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry

  1. 1. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!The U.S. Check Cashing, Money Transfer, Payday Loan Services andPawnshops IndustryPublished on June 2008 Report SummaryThis updated analysis by Marketdata examines the controversial but growing “alternative financial services” sector— a $27 billion business comprised of loosely regulated check cashing, payday loan, money transfer and payday loanservices. These outlets serve 35% of the U.S. population. Many companies are happy to accept the business of consumers withspotty credit records who have been rejected by banks--the 12 million “unbanked” households that choose not to usetraditional banks.Explosive growth had taken place in the payday loan business, but they have come under heavy scrutiny. Critics say these servicesgouge consumers with high fees and interest rates, but they do provide more convenient hours, less red tape, easier credit, and mostcustomers don’t seem to complain. There are 13,000 check cashing outlets, 11,000 pawn shops, 25,000 payday loan storesand 467,000+ money transfer agents competing for this business today. Many outlets/services overlap—providing multipleservices at the same site. The study explores why growth at check cashers and pawn shops is meager, and the effects of theeconomic slowdown.This new study by Marketdata examines the nature of the business, reasons for the growth of non-bank services, immigration trends,national receipts/growth from 1999-2007, 2008 to 2013 forecasts, average store revenues, customer demographics, key industrytrends, federal/state industry regulation/fee caps, self-service check cashing machines, profit margins, franchising, gold prices, globalremittance trends, consumer debt levels, reasons for the industry’s past negative image, and more. Findings of researchstudies by: Fannie Mae, Georgetown University, FISCA, Federal Reserve Board, brokerage analysts, Natl. Check Casher’sAssn., The World Bank, INS, Natl. Pawnbroker’s Assn., U.S. Census Bureau, FDIC, and more.This study is believed to be one of the few in-depth publicly available business analyses that exists of this market. 13 in-depthcompany profiles (with 2005-2007 financials) are provided for: ACE Cash Express, Check Into Cash, Dollar Financial, WesternUnion, Moneygram, Ria Financial, Cash America, EZCORP, First Cash Financial, Advance America, Check Into Cash, CNGFinancial, and QC Holdings. Table of ContentIntroduction: Study Scope, Sources, Methodology Executive Overview of Major Findings •Definition of the components of the U.S. market serving consumers outside of the traditional financial services market (the“unbanked”). Alternative financial services: Check Cashing Stores, Money Transfer Services, Pawnshops, PaydayAdvance lenders. Definition of each segment, number of outlets, and reasons for growth, dollar mkt. size 1999-2007, 2008 & 2013forecasts, major competitors.•Major market trends affecting each of four sectors.•Discussion of reasons for growth ofnon-bank services, population living below poverty level.•Discussion of family debt levels.•Discussion ofnon-commercial bankruptcy trends.•Discussion of annual U.S. immigrationTables:- U.S. Population Living Below the PovertyThe U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry (From Slideshare) Page 1/5
  2. 2. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!Level (1990-2004)- Reasons Why Unbanked Families Do Not Have Checking Accounts (1995-2004)- Debt Service Payments toFamily Income (1995-2004)- U.S. Noncommercial Bankruptcies (1991-2006)- Annual U.S. Immigration (1992-2007)- Market potential:1999-2013 F estimated $ receipts of check cashing outlets, money transfers, pawnshops, payday loan services, total industry.The U.S. Check Cashing Industry Summary & Nature of the Business: How Check Cashing Companies OperateIndustry definitionand size. Number of outlets. Check cashers offer convenience for a price. Typical fees chargedOther services offered: moneyorders, wire transfers, electronic bill payments, notary signatures, utility bill payments, and lottery ticketsIndustry History andEvolution•Beginnings in the Great Depression. •Impact of deregulation of the U.S. banking industry.CustomerDemographics (by gender, income, race, etc.)•Scarborough Research 2006 study. •Ace Cash Express customerprofile. •FISCA 2006 trade group customer profileEmerging Industry Trends•Check cashing fees on the rise, ConsumerFederation of America survey•2007 Federal Reserve Payments study, data for 2000, 2003, 2006•The entry of Wal-Martinto the check cashing market - discussion•More competition from: Pay By Touch, 7-Eleven, Wal-MartIndustryRegulation•Federal Regulations, state regulations•Definition of: The Bank Secrecy Act, Money Laundering SuppressionAct, USA Patriot Act, Gramm-Leach-Bliley ActTable: Check Cashing Fees, by type check Table: List of state check cashing feecapsTable: State Banking Departments for States With Check Cashing Fee MaximumsIndustry Size, Growth,Forecasts•Industry sales: 1999 through 2007•Composition of check cashing revenues by type•Industry sales andnumber of projected units for 2008 through 2013Check Cashing Industry Structure & Profit Margins•Review of the compositefinancial statements for check cashing outlets in New York State.Table: Number and Dollar Value of Payments by Check in the U.S.(2007)Table: The major check cashing franchises at a glance, number, fees, capital neededTable: Check volume & fees reported:1993-2006, New York banking dept.Table: Composite balance sheet of NYS check cashing outlets (2003-2006)Table: Compositeincome statement of NYS check cashing outlets (2003-2006)Major CompetitorsTable: The Major Check Cashing chains (no. ofoutlets)In-depth Profiles for… (Headquarters location, services, detailed 2005-2007 financials, mergers, history and companyprofile)•Ace Cash Express, Inc.•Check Into Cash•Dollar Financial CorporationThe U.S. Money Transfer ServicesIndustry Nature of the BusinessThe transition from the money order to the electronic wire transfers.How electronic transferswork.Industry size.•Industry is being driven by the rise in global immigration.Table: U.S. Immigration by Country of Origin(1999-2003)Industry Trends•International money transfer market is very fragmented.•Major players have a small marketshare.•Increased price competition is lowering transmission costs to the consumer.•U.S. banks are developing servicesfor the U.S. - Latin America transmission corridor.Table: Global Wire Money Transfer Market Share, by type networkTable: The Costto Send $200 to Latin America as a % of Amount (2000, 2004)Table: U.S. Bank Money Transfer ProductsRegulation of theIndustry•Review of state regulations.•Review of federal regulations.Industry Size, Growth, Forecasts•Industryrevenues for 1999 through 2004 - discussion & analysis•Industry revenue projections for 2005 through 2008Table: Number ofWestern Union and Moneygram Agents Worldwide (1999-2004)Major CompetitorsIn-Depth Profiles for… (Headquarters locationservices, detailed 2002-2004 financials).•Moneygram International•First Data Corporation•Vigo RemittanceCorporationThe U.S. Pawnshop Industry Nature of the Business•Earliest form of consumer lending.•Highlyfragmented industry that is concentrated in the southeast and southwestern portions of the U.S.•The pawn loan process -discussion.Emerging Industry Trends•Pawnshops are entering the payday loan market.Pawnshop Customer Demographics(by age, race, gender, income, etc.) •Review of the Georgetown study - major findingsRegulation of theIndustry•Review of state regulations.•Review of federal regulations.Table: State Regulations on Pawnshop InterestRates and FeesTable: State Pawnbroker Associations - contact and phone.Industry Size, Growth, Forecasts•Industry salesand number of units for 1999 through 2004 - discussion•Industry sales and number of projected units for 2005 through 2008 -analysisTable: International Gold Prices (1999-2004)Major CompetitorsIn-Depth Profiles for… (Headquarters location, services,detailed 2002-2004 financials).•Cash America International, Inc.•Cash America International, Inc•EZCORP,Inc.•First Cash Financial ServicesThe Payday Loan Industry Nature of The Business•Fastest growing segment of thealternative financial services industry•The standard and bank business models - discussion•CFSA industry BestPractices. Guidelines.Table: Comparison of Standard Payday and Bank Payday Loan ModelsEmerging Industry Trends•Checkcashing services and pawnshops are entering the payday loan market - analysisEnd-User Demographics - Who is the PaydayAdvance Customer (by age, income, amount of loan, gender, reasons for loan, etc.)•Review of the Georgetown Study - majorfindings•Review of the IO Data study - major findings•Advance America’s customer demographics.Regulation ofthe Industry•Review of federal regulation•Review of payday loan terms and interest ratesTable: Comparison of PaydayThe U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry (From Slideshare) Page 2/5
  3. 3. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!Loan Terms and Interest Rates by State•Industry sales and number of units for 1999 through 2004 - analysis•Industrysales and number of projected units for 2005 through 2008Table: Payday Loan Outlets by State - number.Payday Loan IndustryFinancials & Profit Margins•Review of the Flannery and Samolyk study - major findings.•Discussion of compositeindustry financials.Table: Payday Loan Outlet Composite Income Statement for a Typical Unit.Table: Payday Lender Loan PortfolioCharacteristicsTable: Customer Loan Activity (no. of customers, loans, other metrics)Major CompetitorsIn-Depth Profiles for…(Headquarters location, services, detailed 2002-2004 financials).•Advance America Cash Advance Centers, Inc.•WorldAcceptance Corporation•QC Holdings, Inc.Reference Directory of Trade Associations & Sources •Address, phone,contacts for major trade groups, consultants, list of industry studies and articles, Wall Street analysts/research reports.The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry (From Slideshare) Page 3/5
  4. 4. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email! Fax Order Form To place an order via fax simply print this form, fill in the information below and fax the completed form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93 If you have any questions please visit http://www.reportlinker.com/notify/contact Order Information Please verify that the product information is correct and select the format(s) you require. The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry Product Formats Please select the product formats and the quantity you require. Hard Copy--USD 1 525.00 Quantity: _____ Contact Information Please enter all the information below in BLOCK CAPITALS Title: Mr Mrs Dr Miss Ms Prof First Name: _____________________________ Last Name: __________________________________ Email Address: __________________________________________________________________________ Job Title: __________________________________________________________________________ Organization: __________________________________________________________________________ Address: __________________________________________________________________________ City: __________________________________________________________________________ Postal / Zip Code: __________________________________________________________________________ Country: __________________________________________________________________________ Phone Number: __________________________________________________________________________ Fax Number: __________________________________________________________________________The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry (From Slideshare) Page 4/5
  5. 5. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email! Payment Information Please indicate the payment method, you would like to use by selecting the appropriate box. Payment by credit card Card Number: ______________________________________________ Expiry Date __________ / _________ CVV Number _____________________ Card Type (ex: Visa, Amex…) _________________________________ Payment by wire transfer Crédit Mutuel RIB : 10278 07314 00020257701 89 BIC : CMCIFR2A IBAN : FR76 1027 8073 1400 0202 5770 189 Payment by check UBIQUICK SAS 16 rue Grenette – 69002 LYON, FRANCE Customer signature:   Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at http://www.reportlinker.com/index/terms Please fax this form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93The U.S. Check Cashing, Money Transfer, Payday Loan Services and Pawnshops Industry (From Slideshare) Page 5/5

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