Paytient, which created the Health Payment Accounts (HPAs), has raised $40.5m for its Series B round, which was composed of debt and equity.
The FinTech received $33m in equity from new and existing investors and $7.5m in debt from Silicon Valley Bank.
Mercato Partners Traverse Fund led the Series B round, with Bertelsmann Investments also participating. Existing Paytient investors to join the round included Lightbank, Felicis Ventures, Box Group, Lachy Groom, Left Lane Capital, Commerce Bank, Crossbeam Ventures, Cultivation Capital and Inspired Capital.
With the funds, Paytient plans to scale its growth and product development in 2023 and beyond.
Founded in 2018, Paytient partners with employers and insurers to empower Americans to easily pay out-of-pocket healthcare costs. Its HPAs provide a new source of funds — interest-free credit on a Visa card — and an app that allows cardholders to set up flexible repayment plans that fit their budget.
The HPAs work by employers, health systems, and insurers partnering with Paytient to provide HPAs to employees and members. The members then activate their Paytient Visa card and download the app.
When a member uses that card, Paytient will pay the provider in full. The user can then set the repayment timeline and source of funds.
Paytient co-founder and CEO Brian Whorley said, “Few people plan on getting sick, and even fewer are immune to the financial impact of unexpected out-of-pocket healthcare costs. Over 15 years in hospital administration I saw how challenging this was for patients, providers, and employers.
“Fundamentally, we believe the healthcare journey deserves its own financial products that enable equitable access to care. Our platform gives patients the power to control when and how they pay medical expenses in a way that’s good for their own wellbeing, and as historic inflation grips the market, this is solving an urgent need for employers and providers, too.”
In line with the investment, Mercato Partners Traverse Fund managing director Joe Kaiser will join the Paytient board of directors and Thorsten Wirkes of Bertelsmann Investments joins the board as an observer.
The company has raised a total of $63m.
Late last year, healthcare buy now, pay later platform PayZen collected $20m in a funding round.
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