The move is aimed at stopping people getting into a dangerous cycle of spiralling debt.
It will affect the council's 20,000 staff and the thousands of people using computers in city libraries.
Around 100 sites offering the high-cost, short-term loans have been added to an automatic blacklist, more often used to prevent inappropriate material such as pornography.
IT experts will monitor the internet and bar access to firms which come on the market.
Council officers will now investigate how alternative sources of credit – from organisations such as Scotcash and the city's credit unions – can be promoted.
City treasurer Paul Rooney said: "There has been an explosion in high-interest lending and families from across Glasgow have been catapulted into a mire of debt.
"The action we have taken will not, on its own, reverse that but we should be determined to use all of our powers, our influence and our collective political voice to ensure people are not trapped in a system that offers little protection and inadequate access to affordable credit.
"There will be more action to come."
Pay-day lending in the UK is a £2 billion business. There are around 240 firms operating in Britain and even the cheapest charge interest of around 1700% APR. More typical rates, including those charged by market leaders, are in excess of 4000%
According to the Consumer Credit Counselling Service, pay-day loans are used by 1.2 million people in Britain every year.
That would suggest between 10,000 and 12,000 people in Glasgow are making use of high-interest loans each year, although it is feared the figure could be considerably higher.
Last year, city councillors backed a motion condemning the tactics used by many pay-day lenders.
This led to the formation of a Pay Day Loans Sounding Board, to hear evidence from experts, customers and lenders.
The move to tackle the problem has been backed by SNP councillor Gerry Boyle and Green Party group leader Nina Baker. Evidence sessions will be held this month and next, with a report to councillors in the summer.