Last updated on February 18th, 2026 at 03:03 pm
At their peak in 2021, there were over 23,000 payday lenders in the United States, including physical payday stores and online payday lenders. However, as of 2024, that number has declined to fewer than 14,000 physical storefronts, driven by stricter state regulations and the rapid growth of online lending platforms.
How many payday lenders are there in the US?
Payday lending, the practice of lending borrowers money in between paychecks, grew rapidly from the early 2000s through 2021. In 2017, there were over 14,000 payday loan storefronts across the country, a number which peaked at over 23,000 by 2021.
Since then, the number of physical storefronts has declined significantly to fewer than 14,000 as of 2024. According to IBISWorld, the number of check cashing and payday loan service businesses in the US has declined at a rate of 3.4% per year between 2020 and 2025. This decline is driven by stricter state regulations, with 18 states and D.C. now effectively banning payday lending, as well as the shift to online lending platforms.
Despite fewer physical stores, around 12 million Americans still use payday loans annually, with an increasing share borrowing online.
Key Points
- Payday storefronts peaked at over 23,000 in 2021 but have declined to fewer than 14,000 as of 2024
- California has the most payday lenders of any state
- 18 states and D.C. now ban or effectively prohibit payday lending through rate caps
- Online payday lending continues to grow even as physical stores decline
Which US states have the most payday lenders?
Per state, there is a different volume of payday lenders; this is partly due to the varying level of restrictions between states, with some states totally prohibiting payday lending.
California has the greatest volume of payday lenders, followed by Texas, Tennessee, Ohio, and Mississippi. When looking at the number of payday loan stores per capita, New Mexico has the most stores.
In general, the states with greater populations of lower-income citizens and ethnic minorities have the highest number of payday stores per capita. These include Nevada, Texas, New Mexico, and California.
Is the number of payday stores in the US decreasing?
Yes, significantly. The number of physical payday loan storefronts has dropped from over 23,000 in 2021 to fewer than 14,000 in 2024. This decline is due to several factors:
- More state bans: As of 2025, payday loans are prohibited or effectively banned in 18 states and the District of Columbia. States with outright prohibitions include Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia. Additional states including Colorado, Illinois, Montana, Nebraska, New Hampshire, New Mexico, South Dakota, and Virginia have enacted 36% APR caps that make traditional payday lending unviable.
- Federal regulation: In March 2025, the CFPB’s payday lending rule took effect, limiting lenders to two attempts at withdrawing payment from a borrower’s bank account after failed attempts.
- Online migration: More borrowers are shifting to online lenders and cash advance apps, reducing demand for physical storefronts.
Where are payday stores more popular?
Aside from there being a greater volume of payday stores in areas with lower-income populations, payday loans are also more common in cities. About 7% of Americans who live in cities have used a payday loan, compared to only 3% living in the suburbs. This may be due to payday stores being more widely available in cities, or that higher costs of living create a greater need to borrow money.
| Number of Payday Lenders | |
| Alabama | 1,177 |
| Alaska | 22 |
| Arizona | 726 |
| Arkansas | 275 |
| California | 2,451 |
| Colorado | 577 |
| Delaware | 82 |
| Florida | 1,164 |
| Hawaii | 26 |
| Idaho | 196 |
| Illinois | 727 |
| Indiana | 117 |
| Iowa | 412 |
| Kansas | 100 |
| Kentucky | 707 |
| Louisiana | 1,009 |
| Maine | 6 |
| Michigan | 650 |
| Minnesota | 55 |
| Mississippi | 1,100 |
| Missouri | 1,257 |
| Montana | 104 |
| Nebraska | 57 |
| Nevada | 256 |
| New Hampshire | 77 |
| New Mexico | 760 |
| North Dakota | 76 |
| Ohio | 1,374 |
| Oklahoma | 397 |
| Oregon | 453 |
| Pennsylvania | 400 |
| Rhode Island | 5 |
| South Carolina | 902 |
| South Dakota | 302 |
| Tennessee | 1,344 |
| Texas | 1,675 |
| Utah | 427 |
| Virginia | 743 |
| Washington | 713 |
| Wisconsin | 439 |
| Wyoming | 77 |
| Total | 23,457 |
Note: This table reflects peak storefront counts as of 2021. Many of these locations have since closed due to state-level bans and the shift to online lending. The total number of physical storefronts nationwide was fewer than 14,000 as of 2024.
How many Americans use payday loans?
Approximately 12 million adults across the United States use payday loans each year, according to Pew Charitable Trusts.
The majority of payday loan users are Millennials and Gen-Xers, with 52% of all borrowers aged between 25 to 44. About 9% of adults aged 25-29 have used a payday loan before, versus just 2% of people over the age of 70. The growing accessibility of online payday loans and cash advance apps continues to shift borrowing habits toward digital platforms.
State-specific restrictions have been shown to make a difference in how frequently these payday loans are used. For example, in states with little regulation, 6.6% of adults use payday loans; in the states with the strictest regulations this figure is only 2.9%.
New Mexico has the most payday loan stores per capita.
How much do people borrow?
The average payday loan is $375 with a typical fee of between $10 to $30 for every $100 borrowed ($15 per $100 is most common). Subsequently, an average American borrower pays $520 in interest for every two-week loan. Average borrowers take out eight loans per year, so you can see how this quickly builds up.
As a consequence, the payday lending sector is a multi-billion dollar industry. The US check cashing and payday loan services market is worth approximately $20 billion as of 2025 (IBISWorld), with $9 billion per year paid in loan fees alone. Globally, the payday loan market is projected to exceed $52 billion by 2033.
