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Healthcare is the new enticing sector for buy now pay later providers

Healthcare is the new enticing sector for buy now pay later providers

Healthcare is the new enticing sector for buy now pay later providers

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Buy now pay later services have slowly expanded to all mainstream industries; now, the companies are entering into niche sectors such as healthcare to safeguard their economic future. Healthcare is an attractive sector for BNPL providers as the payment plans are linked to continuous provision of treatment that makes the consumers repay the loans. Moreover, healthcare now and pay later is a win-win situation for patients and providers. Consequently, many BNPL providers enter the healthcare space to secure their future. For instance,

  • A health-tech company, Doktorconnect, has partnered with Carbon Zero, A BNPL platform, in June 2022 to provide buy now pay later services in the healthcare segment. This partnership allows users to access health care services without worrying about their pockets. Doktorconnect offers Nigerians a complete wellness check that covers tests of about 80 parameters, including the Liver, Heart, Kidney, and others. By collaborating with Carbon Zero, the company plans to open the healthcare sector to more Nigerians with easy credit options and zero interest rates.
  • Navia Life Care, a smart healthcare company, launched Aarogya Pay in May 2022 to offer to buy now pay later services to patients. The company allows patients to access medical treatments with instant zero-interest loans that can be paid back in easy installments. Aarogya Pay is a digital process using QR codes at doctor’s offices. By scanning the QR code, users will receive loans with the pre-approved credit limit, which can be used for lab tests, medical treatments, doctor consultations, and purchasing medicines. Navia Life Care expects Aarogya Pay transactions worth 1 billion in the next six months. 
  • Two well-known BNPL providers, Afterpay and Sezzle, entered into healthcare space by signing related deals in February 2022. According to these deals, Afterpay collaborated with online eyewear retailer EyeBuyDirect to provide customers a purchasing option of prescription eyewear in four interest-free installments for up to 60 days. Sezzle enables WellNow Urgent Care customers to pay their medical bills in four installments with zero interest. The customers can use this service in any 100 WellNow locations across five states, including New York.
  • Rectangle Health, a New York-based healthcare financial technology provider, partnered with Healthcare Finance Direct (HFD) in June 2022 to launch its Care Now, Pay Later (CNPL) finance offering. This CNPL option is available to patients from July, and users can easily start the financing process on the company’s Practice Management Bridge platform. Once the user accepts a pay-over-time option on the platform, HFD will release loans and manage payments with the users.
  • SaveIn, A fintech company known as India’s first BNPL platform for healthcare, has collaborated with Madhavbaug, a chain of cardiac care clinics and hospitals in India, in April 2022 to provide their instant loan and pay later offerings. Through this partnership, SaveIn will be able to serve around 270 clinics and two hospitals under Madhavbaug to provide hassle-free and affordable credit options to thousands of patients. 

Moreover, few existing BNPL providers in the healthcare segment are also initiating funding rounds for capital to expand these Care now pay later services to a broader range. For example,

  • SaveIn, a BNPL platform for healthcare, has raised capital from its existing investors in a seed-funding round in July 2022 to make the total capital around US$ 7 million. Bayhouse Capital and 10X Groups, and more investors were involved in the funding round. SaveIn plans to use this fresh investment to improve product development and cement in-house engineering, sales, and data science teams to expand its healthcare network for Care now pay later services. 
  • A buy now pay later healthcare start-up, Walnut has raised around US$ 110 million in series A funding round in May 2022 that includes US$ 100 million in debt financing and the remaining US$ 10 million in equity financing. 

Shortage of health insurance policies worldwide and skyrocketing medical expenses are a few key factors accelerating BNPL services in the healthcare sector. The BNPL providers are providing these easy installment options to patients covering from major medical treatments to frequent dental practices is alluring the patients to choose this financing option. Consequently, PayNXT360 expects that healthcare is an attractive sector for BNPL providers from a short to medium-term perspective. 

To know more and gain a deeper understanding of the global BNPL market, click here.

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