Payday loans should be outlawed entirely, to say nothing of having them endorsed by a federal agency.
Bank accounts are free. FREE! I have never in my entire life (aside from paying for checks to be printed) paid a cent to a bank for checking or savings. I'm sure I've actually made something like 20 dollars in interest by now in fact. Woohoo.
There is no excuse not to have a checking account, for Chrissakes. Just find a local credit union and give them 10 bucks to open an account. Done.