Payday loan apps, often marketed as a low-cost or even “free” way to access wages early, are anything but. This one-pager explains how common features, such as expedite fees, so-called “tips,” and repeated small-dollar transactions, drive up the true cost of borrowing, resulting in triple-digit annual percentage rates for many users.
This resource shows how the business model depends on frequent, repeat borrowing that extracts hundreds of dollars annually from consumers. While individual transactions may appear inexpensive, the cumulative cost rivals traditional payday loans and far surpasses credit card borrowing.