“The biggest difference between a typical payday loan and payday advance apps is that apps don’t charge any interest,” says John Li, co-founder of online lender Fig Loans. Payday advance apps, however, offer more flexibility and affordability for borrowers. In fact, the average interest rate is a staggering 391%. Sounds simple enough, but payday lenders can charge outrageously high fees and interest rates. They give you a loan, with the expectation that you’ll pay it back on your next payday.

With a traditional payday loan, you give the payday advance lender your pay stubs and income information.

Payday advance apps operate on the same concept as payday loans, with some twists.