Cash Converters will cease offering Small Amount Credit Contracts as of the end of September.
The company will instead seek to grow the remainder of its loan book.
“Growing new loan books” is a pillar of the firm’s growth strategy, alongside buying out franchised Cash Converters stores in the UK and Australia.
Payday loans represented 18 per cent the loan book at December 2024, down from 32 per cent a year earlier.
Cash Converters will continue to offer larger size personal loans (with lower loss rates) and line of credit products.
Its gross loan book at December was $274 million.
Walking away from payday loans may deliver Cash Converters a funding benefit.
The “SACC market exit is expected to improve our standing in debt markets” CEO Sam Budiselik said.