Amidst requests for higher cash advance limits, cash advance providers are actively seeking ways to safely increase advance amounts for low-risk users.
We’re excited to share our recent case study, which reveals how a top 10 cash advance provider’s implementation of Pave’s Cash Advance Score helped them achieve:
- 74% increase in advance amounts
- 13% decrease in defaults
- 18% increase in net revenue
- Improved operational efficiency and user satisfaction
Market Trends
Projected to grow from $73.7 billion in 2022 to $138.5 billion by 2032, the cash advance market’s expansion reflects a growing demand for fast financing among consumers and businesses. However, this demand often leads to the use of high-cost loans with rates often exceeding 400%, stressing the need for more affordable options
To more responsibly get consumers their funds, consumer cash advance providers like Vola, Empower, Beem, Grid, Cleo, MoneyLion and merchant cash advance providers like Amazon via Parafin, Square, PayPal via a partnership with Fibe (EarlySalary), and Finova Capital are looking for ways to responsibly increase advance amounts to meet demand.
About the Cash Advance Score
Pave’s Cash Advance Score is trained on a wide variety of users and thousands of attributes, including their history of repaying higher amounts with other providers. This allows providers to increase advance amounts to low-risk users while decreasing overall risk.
The underlying Attributes encompass signals like different forms of income (e.g. social security, gig income, government benefits, etc.), the number of advances a user has defaulted on, the amount of unpaid advances they currently have, and more.
Read more on the case study: https://pave.dev/case-study-cash-advance-provider-increased-amounts-by-74/
Watch an overview video and read more about the Cash Advance Score here. Book a demo here.
.png)
