Non-prime consumers are not stepping back from commerce, but they are making more deliberate decisions about how each dollar is spent.

Rolando De Gracia, chief commercial officer at Concora Credit, described a consumer who remains engaged but is operating within tighter limits.

“What we see is that the non-prime consumer is very savvy about the utilization” of various ways to pay, he said.

That discipline is most visible in the composition of spending. Dollars are moving toward categories that cannot be deferred, particularly fuel and groceries, as higher prices absorb a greater share of available income. The shift reflects prioritization rather than retreat. Non-prime consumers are still participating in the economy, but they are adjusting how they allocate resources across categories.

The scale of this segment reinforces its importance. De Gracia said non-prime consumers represent about a $5 trillion shopping base, tied to 73 million consumers in the United States, underscoring that their behavior has broad implications for retail and credit strategies.

Debit Use Leaves Rewards Untapped

Much of this spending flows through debit and cash, which constrains access to rewards and credit-linked benefits. That reliance reflects both access limitations and comfort levels, but it also creates a gap. Consumers who transact primarily through debit do not participate in loyalty accelerators tied to credit products, leaving tangible value unrealized.

“They don’t get double points … they don’t get double cash back … they don’t get those benefits,” De Gracia said, pointing to the missed opportunity embedded in everyday transactions.

For merchants, the consequence is a reduced ability to influence where spending occurs. Even when total spend remains steady, the absence of rewards-linked credit weakens the connection between brand and customer.

The opportunity lies less in expanding overall spend and more in redirecting it. Non-prime consumers continue to make purchases, but they can be influenced in terms of where those purchases occur. A clear and immediate value proposition tied to credit can shape those decisions at the point of sale.

“They may not spend more, but they can make choices as to where they go,” De Gracia said, adding that rewards can shift activity within constrained budgets.

This dynamic reframes the role of credit. Rather than serving solely as a financing tool, it becomes a mechanism for capturing share of wallet in competitive categories.

Debit dominance does not indicate an absence of credit usage. Many non-prime consumers use both, relying on debit for day-to-day transactions while reserving credit for recurring payments or larger purchases that require flexibility. This dual behavior reflects practical decision-making rather than a fixed preference.

“They use debit a lot, but they also use their credit cards,” De Gracia said, describing a pattern in which credit fills specific needs that debit cannot address.

That distinction is critical for issuers and merchants. It suggests that demand for credit exists, but it must be met with products that align with how these consumers actually manage their finances.

Simplicity and Trust Drive Adoption

Whether consumers engage with credit depends on how offers are structured and communicated. Simplicity is central. Straightforward rewards, such as cash back tied to everyday spending, are more likely to resonate than layered programs that require extended accumulation or complex rules.

“Keep it simple … the simplest thing is double cash back,” De Gracia said, highlighting the importance of clarity in design and messaging.

Trust is equally important, particularly at the point of sale. Consumers must feel confident that the terms are clear and that the process will not create unintended consequences. Concise language and consistent messaging can reduce hesitation and improve adoption.

One practical example is clear, reassuring phrasing during the application process. Encouraging consumers to “apply with confidence” helps address concerns about potential rejection and lowers the barrier to engagement, he said.

Building Relationships Beyond the Transaction

Credit also plays a role beyond the initial purchase. When used effectively, it can support repeat transactions and strengthen long-term relationships between consumers and brands. The focus shifts from a single approval to ongoing engagement.

“It’s about the repeat purchase volume … bringing the consumer back for a second or third purchase,” De Gracia said, describing a strategy that emphasizes lifecycle value rather than one-time conversion.

Over time, access to credit can shape loyalty. Consumers who enter a brand’s ecosystem through financing are more likely to return, particularly when the experience is clear and consistent.

“Those people that gave me access to credit back then still have my loyalty,” De Gracia said, underscoring the long-term impact.