The review is in response to technological changes in the payday loan industry.
They include the growth of online transactions, smartphone-enabled loan approvals and new forms of high-cost, short-term loans.
The review will also explore ways to track payday loans and ensure companies are compliant with existing regulations.
It will also study stronger protections for consumers against multiple loans and roll-over loans and review the maximum total cost of borrowing.
That cost is currently capped at a $21 fee for every $100 borrowed
There are more than 750 payday loan storefronts in Ontario where consumers take out an average payday loan of $300 and pay up to $63 in fees.