44 Million Subprime Consumers Create a New Market for Payments Providers

For young subprime consumers, the clearest sign of financial pressure may show up not at the checkout counter, but at the doctor’s office.

The PYMNTS Intelligence report “Who Is the Subprime Consumer? A Behavioral Profile” found that subprime consumers are not a temporary slice of the market. They represent 17% of consumers in the United States, or about 44 million adults, and their share has stayed within a 14% to 23% range across 47 monthly survey waves.

The more useful insight is behavioral. Subprime consumers are changing how they pay, shifting across credit cards, buy now, pay later (BNPL), informal borrowing and payment plans as they manage everyday costs. For young consumers, that pressure shows up most sharply in healthcare.

The report drew on several PYMNTS Intelligence studies, including the January New Reality Check: The Paycheck-to-Paycheck Report, the February  Financing the Decision: How BNPL and Installments Reshape Merchant Choice, and The Generational Pulse, a January study of 2,747 U.S. adults. Together, the data suggested that subprime consumers are not simply high-risk borrowers. Many are active financial managers using a patchwork of tools to keep bills paid. Like a household bridge loan, each option fills a gap until the next paycheck, refund or payment arrives.

Three data points show how generational pressure is shaping this market:

Only 51% of young subprime consumers reported no healthcare access issues. That compared with 58% of young prime consumers and 73% of young super-prime consumers. Among young subprime consumers ages 18 to 43, 23% delayed a doctor’s visit, 17% skipped a recommended treatment or test, 14% did not fill a prescription and 11% reduced dosage or rationed medication.

To manage healthcare costs, 38% of young subprime consumers borrowed from family or friends. Another 31% negotiated bills or set up payment plans, while 26% used BNPL or installments for healthcare. These are not fringe behaviors. They show young consumers using every available channel to keep care within reach.

The share of subprime consumers who hold no credit or store card at all is 35%. That compared with 12% of prime consumers and 4% of super-prime consumers. At the same time, subprime BNPL usage was 19%, above the 13% whole-sample rate. The report also revealed that always-or-usually revolving among subprime consumers fell from roughly 50% in mid-2023 to 38% in January.

The optimistic angle is that the data pointed to better design, not just more risk controls. Young subprime consumers are already signaling where they need help, including at the doctor’s office, pharmacy counter, telehealth checkout and bill payment moment. Healthcare finance, card and installment providers that build around timing, transparency and small repayment steps can serve this group without treating it as a blunt credit category.

The report also showed that windfalls act as working capital. Among subprime tax refund recipients, 67% said their refund was critical or very important to their finances, compared with 48% of the whole sample. That finding reinforced the broader theme.

Subprime consumers are not standing outside the financial system. They are navigating it with fewer cushions, more trade-offs and a clear need for products built around real cash flow.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.