You know, I've thought about getting into online payday lending myself as I build the Empower database. I think one of the most basic steps is to find a software application that can handle the entire business process. Its my belief that MUCH of the online lending risk is mitigated when you adopt a stable payday lending platform. The reason why I say that is because if you can't keep track of your dollars on the street, and loose count of your borrower's paycheck dates your going to see MASSIVE collections and default numbers. From what I understand, online payday lending is about EXECUTION - being able to execute all your ACH payments on-time, and using your underwriting software correctly. If you can use technology to ease the pain of these two factors, profitability is almost surely found in the states you choose to originate loans in.