As the short-term payday loans grow in popularity in the US, more banks are expected to offer these loans to those in desperate financial need. Several big banks and credit unions have already adopted payday loans as one of their financing product and are earning huge profits from it, while others are planning to jump into the payday lending market.

The major attraction for the customers is that payday cash loans are being provided at much cheaper interest rates, with $7.50 fee on a $100 amount, which is far lesser as compared to what payday companies offer and also lower than the bank overdraft cost.
According to the American Bankers Association, these direct deposits have enabled customers to live within their resources by allowing them to manage the timings of the receipts of these means.

Since these loans are typically availed by middle to lower-income earners who sometimes fail to repay the loan on due date, payday lenders offer loan extension facility at an additional cost. However, due to the extreme criticism by some authorities, banks have assured that their loans are protected against rollovers.

At the moment, there are no defined state regulations regarding this banking activity, yet authorities have imposed upon the banks that they should take every possible step to disclose the terms and fee structure of payday cash advances.

This trend has received mixed remarks from the community at large. Many people are seeing it as an important step towards providing relief in emergencies to the public at large.