Payday Loans
The Payday loan industry has an annual loan volume of more than $28 billion dollars in Canada and is growing rapidly annually. Estimates from the year 2000 put loan volume at between $8 and $14 billion dollars indicating that the market has more than doubled in size in 6 years.
Challenges
With this tremendous growth and the increased demand of users / borrowers dealing with short-term financial emergencies, there is a cost to the payday loan companies in this sector such as a penchant for high charge-backs and returns. Furthermore, with the increase payday business, the need for an efficient “payout” model to customers is in high demand along with a cost effective settlement schedule.
Benefits and Solutions
Citadel Commerce’s powerful processing platform, Citadel Direct, enables Payday Loan Companies to batch real-time transactions which allows Payday Loan companies to overnight the funds to their customers with late cut-off times.
Our real-time bank transfer is one of the payment options that is particularly valued by Payday Loan companies as it provides them with real-time payment confirmation. In addition, real-time bank transfer payments are guaranteed so customer reversal or charge-backs are not possible.
With our global risk mitigation and fraud prevention service platform, Citadel Commerce can help reduce the chargeback rates with Citadel Commerce’s real-time ID verification and authentication and risk assessment per transaction program.
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