JPMorgan Chase is buying US healthcare payments specialist InstaMed in a deal reported to be worth more than $500 million.
InstaMed says that its centralised platform alleviates several of the issues in the healthcare payments industry, eliminating paper, making the process easier for consumers, and cutting collection costs
JPMorgan says the deal will expand its suite of payment services designed specifically for healthcare consumers, providers, and payers - giving it a stronger position in a $3 trillion market riddled with friction and inefficiency.
Takis Georgakopoulos, global head, wholesale payments, JPMorgan Chase, says: "We’ve made significant investments in our Wholesale Payments business over the years and this acquisition will give us a unique advantage in one of the fastest growing sectors.
"With InstaMed, we combine the strength and scale of JPMorgan Chase’s payments capabilities with a leading healthcare payments solution for consumers, providers and payers."
Terms of the deal have not been disclosed but, according to CNBC, JPMorgan is paying north of $500 million.