A payday loan is a type of cash advance in which the borrower pays the lender back on their next payday, unless the borrower wishes to extend the loan; in that case, additional interest is charged. Payday loans typically range from $100 to $1,000, but despite the small amount of money borrowed, lenders often charge extremely high interest rates, sometimes up to 400%.Payday advance apps offer more flexibility and affordability for borrowers than payday loans. The biggest difference between a typical payday loan and payday advance apps is that apps don’t charge any interest, since payday advances are not considered loans.