Direct-to-Consumer Paycheck-Advance Borrowers Paid $208 a Year in Fees and Tips

Direct-to-consumer paycheck-advance apps carried an average $207.85 in annual fees and tips per borrower, while fees or tips appeared on 96% of loans in a U.S. transaction sample covering September 2024 through August 2025. The average advance was $113.31 for nine days and cost $6.49 in fees. Annualizing the average advance’s nine-day cost produced an illustrative APR of 232%; it does not represent the amount borrowers paid in a year. The national sample covered 9,987 borrowers, while a broader screen identified 346,902 app borrowers. The sample may not represent users across the market. Some advances or repayments routed through in-app wallets or accounts outside the observed bank data may also be missing.

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