Monthly Archives: March 2021

The basic difference between Tribal Lending and Payday Lending

Tribal loans are popular everywhere as they provide an easy way of financing with simple procedural policies. There are many different types of loans provided by the tribal lending communities of Native America. Here, in this article, we will get a clear idea of the basic difference between the most popular tribal loan terms.

First, Tribal Lending is the common loan option available for financing. Payday lending is the very short loan taken to solve the liquidity problems of the borrowers. To know more about it in detail visit  https://onlinepaydayloanquickes.com/what-are-tribal-payday-loans/.

The basic difference between the two terms is as follows.

Definition

Tribal lending is an installment payment option for repayment of the loan. The loan can be paid back in the installments notified by the lender while taking a loan.

Payday lending is a one-time repayment loan. The total amount of the loan is to be paid back in a definite time period. Usually, it is a single-day loan scheme.

Flexibility

Tribal lending loans have the flexibility to pay the repayment amount in installments. It gives a good time period to the borrowers to arrange the money for repayment gradually. It avoids the load on the borrower while paying back the amount.

Payday lending has a fixed date on which the total amount of the loan is to be paid back. This is less flexible and does not allow the borrower to pay back the amount in parts.

Financial capacity of the borrower

In the case of tribal lending, the financial capacity of the borrower does not matter much. As the repayment process is long, every borrower gets sufficient time to arrange the money for the repayment.

The financial capacity of the borrower matters a lot in the case of payday loans. A borrower with poor financial performance should not go with the option of payday loans. It will be a huge risk for them to pay back the total amount on a single pre-decided repayment date.

Requirement of Collateral

Long-term tribal lending requires complete information of the borrower. Complete filing procedures with pay records are checked out before providing loans. The tribal lending parties have to communicate for a longer-term and duration, therefore, they ask for minimum security requirements due to an abrupt change in the environment.

The payday loans are for a short-term period. And, the contract ends after the repayment on the decided date. The payday loans are generally taken during an emergency and hence no requirement of collateral is needed.

Various Impacts of Paywall Labels on Consumer Behavior

A paywall label is a label accompanying search results that can tell the user whether the content of a given website is paid-protected or free. Paywalls restrict web content for users unless they pay a subscription, and it allows websites to monetize their content and generate revenue for its maintenance and business.

We can take a look at it from the point of view of a user searching the internet for information. They’re looking for some relevant article or page and upon stumbling across it, they proceed to visit the site only to be rudely reminded, hallway through reading, that the content needs to be paid for. Such instances can be and usually are very frustrating to the user, who now needs to continue his or her search, wasting unnecessary time. 

As mentioned earlier, paywall labels are intended to indicate your search results according to the monetary nature of the content. It will prevent you from clicking on a paid link, which will in turn be made possible by offering various other results with similar content. Enabling a paywall label will save time and energy in coming across the right information without any hassles. It will also be less frustrating for the visitor and will create a space for more readily accessible information.

Paywall labels have the power to change the way websites work, as it will change the way consumers behave when looking for information. Following are some of the effects that can be witnessed in consumer behavior concerning paywall labeling.

Consumers will skip over paid content

The most obvious change in consumer behavior will be that of skipping the paid content. The very purpose of a paywall label is to segregate search results based on paid and free content. And, traditionally, one only becomes aware of the paywall after accessing the website. However, should a label be employed, the user can decide beforehand if they want to access a particular site for information. A recent poll conducted by Deyan Darketing confirmed this, with 67% of users finding labels to be of great use. By having this system in place, you will be ensuring that people won’t be skipping over or overlooking any relevant content. 

Consumers will look for free content

If consumers want to skip paid content, the only option they are left with is flocking towards free content on websites that might lack the quality and credibility of the information. Such action might lead those lower-quality articles to rise in popularity and even those same articles appearing in high-priority search results, creating a kind of bubble of mediocre content. This will not only impact the way consumers find and disseminate information, but it will also influence their psychology in various other related areas.

Consumption of bad quality and poor sources of information

According to Google, allowing paywall labels will affect the paid website’s businesses negatively and will erode the level of quality in the journalism involved. The general population today simply doesn’t care to lavish either their attention or money on something they can get for free elsewhere. Such instances will inevitably increase the consumption of bad journalism and the proliferation of poorly sourced information.

Paywall labels can be a source of problems for premium websites, however, to the average user, it can prove to be a very useful tool – one that has the power to change consumer behavior drastically. With this continued dichotomy playing out in the world of information consumption, the effective benefits are entirely dependant on which side of the argument you find yourself on.