ASIC watching online payday lenders

The corporate watchdog has sent a warning to dodgy payday lenders that their online activities are being monitored.

Australian Securities and Investments Commission chairman Greg Medcraft told a Senate committee on Wednesday that it was being assisted by tech giant Google and was about to invest in Microsoft social media analytics.

"Whether you do it physical or you do it online, we will watch and we will take action," Mr Medcraft warned lenders.