California-based fintech startup PrimaHealth Credit announced the launch of a ‘buy now, pay later’ payment plan specifically designed for credit challenged or underbanked patients needing elective healthcare treatment. The BNPL solution is the first of its kind to be introduced in the healthcare market and is timely, given the millions of patients financially impacted by the pandemic, according to a press release.
BNPL services in other categories have seen a 200% increase during COVID-19, according to the financial services firm Klarna. However, lending products in elective healthcare focus on the best credit-worthy patients, leaving behind 52% of Americans who don’t qualify.
To determine eligibility, the company analyzes over 200 attributes to review a patient’s background for fraud, bankruptcy, or overall ability to pay, and the attributes are tailored to each healthcare segment it serves.
“We can gauge a patient’s creditworthiness in ways traditional lenders overlook,” Brendon Kensel, founder and CEO, PrimaHealth Credit said in the release “Frankly, typical credit scores don’t tell the whole story. For many dental, orthodontics, LASIK, and cataract surgery patients, our BNPL product is a ‘last resort’ and the difference between getting the treatment they need, or not.”
Patients use a simple mobile application, receive instant credit decisions, and if approved, can select from several payment options, making the experience simple and fast. The company currently operates in Arizona, California, Florida, Oklahoma and Texas, and will be expanding to all 50 states in 2021.