Google, a unit of Alphabet, said it would ban advertisements for payday loans as these "deceptive or harmful financial products" take advantage of vulnerable customers.
Google, which joins Facebook in blocking ads by payday lenders, announced its decision a day after the US Treasury suggested that online lenders support more transparency in their transactions.
Payday lenders offer small loans at high interest rates that have to be repaid in a short period of time.
They have come under criticism as borrowers often fail to pay the loans or tend to refinance them, increasing their debt.
"Research has shown these loans can result in unaffordable payment and high default rates for users," David Graff, director of global product policy at Google, said on a Google blog.
The company will ban advertisements for loans where repayment is due within 60 days of the date of issue.
In the US, the company will also ban advertisements for loans with annual percentage rates (APRs) of 36% or more.
Advertisements that appear on the top and right side of a Google search results page will no longer show marketing from the payday lending industry from July 13.
