It's a much bigger step for a payday loan business to turn into a bank (basically impossible due to regulatory barriers to becoming a bank), than for a pawn sho

It's a much bigger step for a payday loan business to turn into a bank (basically impossible due to regulatory barriers to becoming a bank), than for a pawn shop to switch suppliers. Look at it this way, when people move out of poverty, their need for payday loans goes down, but their ability to buy stuff goes up, so a pawn shop has some potential to capture the increased purchases.