But even with the CFPB proposal and a friendly U.S. administration, some online lenders are moving away from payday loans. Many have pivoted toward installment loans, which are paid back over time rather than in a single payment. Additionally, these lenders also offer what they call “lines of credit,” which operate in a fashion similar to credit cards.

Still, even installment loans can come with eye-popping interest rates. One example on Enova’s website shows a $1,000 loan with 13 payments at a 172.98 percent annual percentage rate (APR). In the end, this would require a total of $2,225.18 to pay off. Enova declined to comment.

The industry argues that high interest rates are needed to counter the risk associated with giving money to consumers more likely to default. In a securities filing last year, Chicago-based Enova spelled out just how risky its business can be.

For the third quarter of 2018, the company projected that close to 33 percent of its “short-term loans” balance outstanding would never be repaid. The expected loss dropped to about 19 percent and 13 percent for line-of-credit and installment loans, respectively. For context, banks only saw a 3.5 percent loss on credit card loans over the same quarter, according to the Federal Reserve Bank of St. Louis.

While such exorbitant rates might be justifiable to lenders, Horowitz said the cost to borrowers could be grave.

“Right now, 80 percent of payday loans are taken out within two weeks of a previous payday loan because the loans on average take up one-third of the borrower’s next paycheck,” he said, a burden that can grow with each new loan. “The average payday loan customer pays $520 a year in fees to repeatedly borrow $325 in credit.”

“Banks can be profitable at a price point six to eight times lower than average payday loan pricing.”

While in the short-run these lenders might have the upper hand, the days of super high-interest loans may be numbered. The payday loan industry sprang up because traditional banks were reluctant to serve the low credit score universe. This was in part because regulators didn’t give them clear guidelines. But that may be changing.

In 2017, another CFPB rule opened the door for banks and credit unions to offer small installment loans at reasonable prices. Last May, the OCC followed up with guidance for short-term, small-dollar installment lending. Then in November, the Federal Deposit Insurance Corp. issued a request for public comment on small-dollar credit products.

Horowitz sees this evolution as a great benefit to Americans who use payday products.