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By Georgia Wilkins and Clancy Yeates. A boom in online payday lending in Australia has helped Cash Converters return to profit after multimillion-dollar losses last year.
The company, which is known for its bright yellow pawn shops, hopes to cash in on the growing number of Australians turning to the internet for fast cash. More than 1 million Australians are estimated to take out a payday loan each year.
Photo: Karl Hilzinger. It plans to expand its store network in Australia while retreating from Britain, midsouth bank personal loans invest more in the fast-growing online lending market.
The change in strategy comes after a drop of more than 50 per cent in its share price in 2015, amid a government review of the laws in the payday lending sector. Cash Converters plans to expand its store network in Australia. Cash Converters managing director Peter Cumins said the company believed it had the best chance of making sustainable profits in Australia, where it held a midsouth bank personal loans market share in payday lending.