Prepaid card supplier Emerchants has suffered a setback in the online payday lending side of its business, where what it described as "increased regulatory oversight and negative media commentary" led to lower volumes.In the six months to December loan volume in this segment was down 44 per cent on the previous corresponding period. The impact on earnings was around A$200,000.The company said that, in addition to increased regulatory pressure and bad press, Westpac's decision to stop funding payday lenders also hurt. Some lenders had to put operations on hold while they looked for other sources of funds.Emerchants said in its December half financial report that it expected loan volumes with online lending partners to recover. The company implemented card programs with Credit Corp in December and Cash Converters this month.Elsewhere the company maintained its strong growth trend. It reported a net profit of $630,000 for the six months to December, compared with a loss of $430,000 for the previous corresponding period.Revenue was up 108 per cent over the previous corresponding period to $10.6 million. The business had positive cash flow of $316,844 from operating activities.The company processed 6.6 million transactions in the half - an increase of 62 per cent over the previous corresponding period. Total funds loaded grew by 98 per cent to $383.4 million.In its gaming business, Emerchants launched card programs for bet365 and Crownbet. It signed William Hill as a gaming partner in December and expects to have that program up and running in the June quarter.Loads in this segment increased from $13 million in the six months to December 2014 to $90 million in the latest half.The company's European business, where it operates a number of non-reloadable store card programs, and where the company has the majority of its accounts, reported double-digit sales growth.It launched a program with Blackhawk Network, a prepaid specialist.