Payday loans have been around since the early 1930s. However, payday loans have become increasingly popular, especially among Generation Z. But despite their popularity, it’s important to note that payday loans have high-interest rates that could lead borrowers into debt.

The coronavirus pandemic exposed the dire need for people to access inclusive financial services, mainly since the pandemic has caused people to scramble to obtain funds for their essential needs.

A payday loan is a high-cost, short-term loan based on a borrower's income.

Research has estimated that 49% to 79% of Americans are living paycheck-to-paycheck. Part of the financial struggle is having to borrow money or rely on the predatory economy, including payday lenders, title loan services, and pawn shops.