What’s the Difference Between Online and Traditional Payday Loans?

If you head online versus traditional, chances are you can piece together the main difference – online versus brick and mortar. However, when it comes to what difference that detail makes, you could get a little foggy.

Today, we’re here to explain this difference once and for all, and it’s not as big-a-deal as ads and marketing might have you think! When it comes to online payday loans in Canada, iCASH is your go-to resource, not just because we offer them, but because we offer a plethora of information about them as well.

What’s a Responsible Lender?

When you see an ad for payday loans, it might look something like this, “X Company – we’re a responsible payday lender offering [traditional/online] short term loans!” When someone says they are a responsible lender, that means they are following all the laws for their region and putting the customer first.

After all, the goal of any business is to make money through helping the customer with a need. If you are putting money before the customer’s need, then your business is backward and could be hurting the customer more than helping!

What Makes Lending Responsible?

When you look for a good lender, you want to make sure that they have a great customer service team. Their team should be able to give you the cash advance you want while also teaching you and educating you on any questions you may have.

In addition, you should make sure they know and are following your region’s specific laws. For example, Nova Scotia has unique lending laws just for its residents. If you like in British Columbia, your laws will be totally different. Making sure a lender knows this and knows the differences is vital to getting a good loan.

Online Versus Traditional Payday Lenders

The other half of our payday ad is, “…offering [traditional/online] short term loans!” That’s where the main difference will come into play. While any lender can be reputable, the information they need to know, and the process they follow will be different based on how they operate.


If you go to a traditional lender, then chances are you’re going to a local that offers loans. This person might have a storefront, five or more employees, and a small landing page online. Due to their location, they probably only know the local laws and offer rates at that level. There’s also a high chance that it will take a few days to complete the process.


On the other hand, an online payday lender works all over the country. As such, they need to know the laws for every region, or else not do business there. In addition, they might just have a website and app and half the number of employees.

Rather than work via person, computer software is used to analyse the loan applications, credit histories, and bank account info. This not only creates a uniform process, but it can also actually speed up getting and repaying the cash loan. Not to mention, the total cost of borrowing could drop due to the lower expenses the company has to pay for.

In our heads, that presents a clear image of why reputable online payday lenders are better, though we might be a little biased.