YadYap Peer-to-Peer Payday Loans

YadYap website.
YadYap, payday spelled backward (how’s that for a rickety but innovative name), is the first people-to-people lending platform specifically for the payday loan industry. YadYap is looking forward to an official launch soon. It is interesting that I should hear about YadYap (thank you Jared) so soon after I wrote that “there will be many peer to peer lending websites.”

The Inspiration for YadYap

According to their website, YadYap was inspired by three characteristics of the payday loan industry:

  1. The significant need for short term loans.
  2. The controversy over lending rates charged.
  3. The lack of borrower representation in the market.

How do Borrowers Benefit from YadYap?

  • Instant loan approvals.
  • Funds quickly deposited to their bank account.
  • Lending rates determined by the free market through a competitive auction.
  • Good repayment performance is rewarded with lower interest rates and loan fees.

How do Lenders Benefit from YadYap?

  • Provided with pre-screened loan applicants.
  • Credit / payment history is tracked resulting in a YadYap risk rating.
  • YadYap handles all documentation, fund transfers and loan administration.
  • Lenders benefit from both monetary and social returns on their capital.
  • YadYap takes the inefficiencies out of the market.

The biggest advantage of YadYap is the almost instant liquidity that comes from offering short term 2-4 week payday loans. Unlike Prosper and Lending Club, no secondary market is needed to achieve liquidity for lenders. When YadYap opens, this may prove to be a significant advantage for them. And maybe there will be a few less “Payday Loans Here” signs on main street as business migrates to the web.


5 Mar 2009 I removed my instant liquidity link to YadYap’s blog. All it returns is a WordPress message that reads:

This blog has been archived or suspended for a violation of our Terms of Service.

Not a good sign. I wonder if they need a payday loan to tide them over?

12 Mar 2009 Restored my instant liquidity link to YadYap’s blog, which has changed location and is now called [link no longer works]. Set aside money for a payday loan to YadYap through their platform once they launch.
19 Oct 2010 Yadyap launched. In this first phase, all lending will be done by YadYap LLC, their affiliates, and other institutional lenders.
25 Feb 2012 ConnectFund link no longer works, replaced all references to it with this bracketeted phrase: [link to longer works].

Rickety signature


  1. That’s looks like a pretty dang cool company. Do you know who is behind Yadyap?

  2. I don’t know. There’s nothing on their website or blog about it. It’s a great question though. I’ve emailed someone from the company, I don’t know if they will respond.

  3. Robert,

    Here is the response I received:
    We are not releasing information about our founders at this point. We feel that the best thing we can do for the success of YadYap is focus on the system until we publicly launch. At that point we will release all of the information on the founders, etc.

  4. Thanks for looking in that! Very much appreciated.

  5. I’ve done some studying up on this company and in theory it sounds pretty good. One thing is for sure. With all of the meddlesome government legislation proposed we will have to change the way lenders lend in the very near future.

  6. Vern Masterson says

    While it’s not yet entirely clear how they’ll be going about this business, it’s possible that they’ll be able to get around a lot of recent legislative efforts to ban payday loans simply by operating entirely online. I’m not quite sure if that practice was affected by any of the recent propositions that passed, but it sounds to me like the best way to avoid being banned from specific states while simultaneously entering a national lending market. I’m interested to see how they pull this off and how it’s received by customers and policy makers.

  7. I am interested in the comment above that those operating solely online may be able to get around the upcoming payday lending changes. If the new federal legislation is passed as the new administration has promised, I would think that anyone operating in the U.S. would be capped at the proposed 36% A.P.R.

  8. Payday loans or cash advance is now available. You can try this! Since the expenses and costs are too much for some, this can be of help. Money – it has everything to do with how people make a living in this world; if they need a little bit more, some people get payday loans. The history of money and the history of payday loans are long and complex. There’s a story that money was invented in Phenice, a town in Phoenecia, but the jury is still out on that one. Many cultures used currency of some sort, as a unit of value relative to a certain commodity. Largely, money today is all based on a vastly complicated system of credit. It is in the using of that credit that we at times come up short, sometimes due to an unexpected expense, which is when we get payday loans.

  9. Va home loans says

    I foresee this service to be one that has potential to be a great service to both borrowers and borrowees. This could become the newest way to make money online. One thing is for sure, the people of this country need this now. With it being peer to peer and exclusively online there are going to be some interesting quirks I am sure. Things like how or will this effect credit, will it become a good tool gone bad by people flowing in to scam the system, what government regulations do they have to follow or not follow, etc.

    Interesting post and thanks for the info. I will be following the development of this.

  10. Hi Rickety,

    I just saw the update you posted to this post. The YadYap blog has been moved to another server. We are alive and well. We’ll have an update posted about what happened with the wordpress blog we had previously been using.

    The post you were referring to about liquidity can now be found here: [link no longer working].

    The YadYap Lending News Blog will be found at [link no longer working].

    We appreciate your post about YadYap. Great job on the Rickety blog by the way… Please let me know if we can do anything for you in the mean time.

    Oh and about getting a payday loan… We would happy to receive a payday loan from you through the YadYap platform once it’s launched :)

    Best Regards,


  11. Darren,
    Thanks for the update and you can be sure I will be trying YadYap when it is launched. I am wondering why the blog is using a different domain name than YadYap? Maybe to keep it separate from development?

  12. Nicola Vidal says

    Certainly an interesting business model, similar to what BetFair does here int he UK P2P betting

    I’ll keep an eye on YadYap – when does it go live?

  13. Nicola,
    They will not say.

  14. Really interesting idea, similar to the system that Wonga have. Any one know when it’s going to launch?

  15. Oh my goodness! Incredible article dude! Many thanks, However I am having problems with your RSS.
    I don’t understand why I cannot subscribe to it. Is there anybody else having similar RSS problems? Anybody who knows the answer will you kindly respond? Thanx!!

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