Payzen Raises $15M Series A for Healthcare BNPL Platform

Rising Healthcare Costs and Innovative Financing Solutions

Healthcare expenses within the United States are consistently increasing, and the portion patients are required to pay directly has risen concurrently.

A 2019 Gallup poll indicates that close to one-third of American households have postponed seeking medical attention due to financial constraints.

PayZen's Series A Funding

PayZen, a fintech startup focused on the healthcare sector, has secured $15 million in Series A funding to support its innovative approach.

This solution utilizes artificial intelligence to assess patient medical debt, enabling access to care and facilitating payments through manageable installments.

SignalFire spearheaded the funding round, with contributions from Link Ventures and 7WireVentures, alongside existing investors Viola Ventures and Picus Capital.

Having previously raised $5 million in seed funding in early 2021, this Series A round brings the company’s total funding to $20 million.

The "Care Now, Pay Later" Model

PayZen offers a “care now, pay later” option accessible to all patients.

This allows individuals to finance procedures over time without incurring any fees or interest charges.

The platform’s underlying artificial intelligence technology empowers hospitals to utilize patient data for creating customized payment plans.

This process is designed to minimize administrative overhead while maximizing affordability.

Founding and Leadership

PayZen was established in 2019 by Ariel Rosenthal, Itzik Cohen, and Tobias Mezger, three experienced professionals in the fintech industry.

Itzik Cohen currently serves as PayZen’s CEO, bringing prior leadership experience from his role as chief executive at consumer debt fintech Beyond Finance.

Addressing the Growing Burden of Out-of-Pocket Costs

Cohen highlighted that patient out-of-pocket expenses have doubled over the past decade and are projected to double again within the next ten years.

“Our team, with its background in fintech, observed the positive impact of ‘buy now pay later’ on e-commerce.

This model enabled consumers to afford higher-priced items through innovative credit underwriting.

We recognized a similar opportunity to assist medical providers facing challenges in collecting increasing patient balances,” Cohen explained.

Improved Payment Adherence and Financial Benefits

Because patients utilizing PayZen’s plans are not subject to interest charges, healthcare providers retain these costs.

Cohen stated that prioritizing payment plans tailored to individual patient financial circumstances has demonstrably improved payment adherence rates.

Positive Results at Geisinger Hospital

Geisinger Hospital, located in Philadelphia, experienced a 23% increase in payment collections after implementing PayZen’s solution.

Cohen also noted that the average operating margin for major U.S. health systems is relatively low, around 1%, and the industry is currently grappling with staffing shortages.

“Any adverse shift in market conditions could lead to financial losses.

Therefore, organizations are actively seeking to optimize operations and invest in technologies that automate processes,” Cohen added.