- Enova International (NYSE:ENVA) and Curo Group Holdings (NYSE:CURO) have reduced their reliance on payday loans yet are seeing continued revenue growth using other ultra-high interest-rate loans that aren't subject to the same regulations as payday loans, Bloomberg reports.
- The two companies are now mostly focused on installment loans and lines of credit.Curo also offer gold-buying, check-cashing, and money-transfer services. Payday loans are typically repaid in one payment, whereas the many of the new loans are paid off over time.
- According to Center for Financial Services Information, payday lending declined to $6B in 2016 from $9.2B in 2012, while installment lending rose to $6.5B from $4.3B over that same time period.
- ENVA +1.6% and CURO -0.2% in afternoon trading.