Pawn shop or pawnbroking is the traditional means of obtaining money in a short time. This money is given as loan against certain possession/collateral of the loan borrower. If the borrower does not repay the principal amount plus interest after the decided maturation date of the loan, the possession/collateral of the borrower is forfeited, which the pawn shop owner can again resell it to other customers. Therefore, pawn shop is the place where an individual can get money by giving collateral or can buy an item easily in a very short time period. Products bought or sold at pawn shop include jewelry, electronic items such as TV and camera, guns, and musical instruments among others.
- The global pawn shop market is expected to gain significant traction over the forecast period, owing to the easy and quick access to money at pawn shops. Money obtained by pawning the item can be used to fulfill basic requirements such as paying rents, electricity bills or for fuelling the car. For instance, according to National Pawnbrokers Association, in the U.S, according to U.S. Economic Census of 2012, there were around 6,000 pawn establishments in 2007, which increased to around 10,000 pawn establishments in 2012. Increasing need for quick access to money is expected to drive growth of the pawn shop market.
- However, stringent government regulations such as ‘USA Patriot Act’ and ‘Truth in Lending Act’ imposed on pawnbroking, in order to ensure consumer protection and to prevent money laundering incidences is expected to hinder the global pawn shop market growth.
- Players operating in the pawn shop market are focused on adopting various growth strategies such as business expansion, partnership as well as launching online platform for pawnbroking, to provide easy access to the pawn store.
- For instance, in 2014, Borro Private Finance, the U.S. and U.K.-based pawnbroker company, raised a fund of US$ 112 million from Victory Park Capital Advisors, LLC (a U.S. based investment firm). The funding allowed Borro to expand its business across the U.K. and to increase its lending capacity to US$ 2 million per asset.
- Moreover, in September 2016, Bravo Pawn Systems, a market leader in software development for pawnbroking, launched first mobile app, ‘MobilePawn’, which provides pawn services to its customers at a single click on their smartphones.
Key players operating in the global pawn shop market include DFC Global Corp., Borro Private Finance, KVP Group, EZCORP INC., American Pawn Company, Luxury Asset Capital LLC, UEDA Co. Ltd, Cash Converters Pty Ltd, Valley Pawn, and Tiger Pawn Store
On the basis of product type, the global pawn shop market is segmented into:
- Jewelry & Accessories
- Electronics & Tools
- Antique Collectibles
- Musical Instruments
- Precious Metals & Stones
- Others (Vehicles, Clothing, etc.)
On the basis of service, the global pawn shop market is segmented into:
On the basis of store type, the global pawn shop market is segmented into:
- Independently Owned
- Publically Owned
On the basis of region, the global pawn shop market is segmented into:
- North America
- South America
- Rest of South America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa