Home improvement lending FinTech PowerPay is expanding into the field of healthcare financing, the company said in a news release Thursday (March 17).
The company said the new program will help patients finance things like cosmetic surgery, dentistry, fertility treatments, medical spa services, vision correction and elective procedures.
“PowerPay has seen tremendous growth in the home improvement space since 2020 with $1 billion in total loan originations,” the company said, noting it had been planning to expand into several verticals.
With the healthcare financing plan, medical professionals can offer patients loans of up to $60,000 with 9.99% interest rates and terms from six months to six years. According to PowerPay, its loan origination technology platform simplifies financing for both patients and medical professionals.
David Haas, PowerPay’s co-founder and chief operating officer, said the company saw “an enormous opportunity to disrupt the traditional high merchant fee model currently offered by big banks. Offering longer terms with lower rates and no merchant fees eliminates friction in the model and is a win-win for doctors and patients.”
PYMNTS research has found that on average, consumers pay roughly $810 on out-of-pocket healthcare visits, with uninsured patients spending almost 20% more out of pocket than their patients who have insurance. In addition, 21% of patients reported spending more on healthcare than they had in previous years.
Last month, PowerPay announced an integration with home improvement contractor and remodeler sales software platform Leap, giving users access to PowerPay financing products.
That access includes a no-dealer-fee program that comes with 15-year terms, rates starting at 4.99%, a maximum loan of $100,000 and FICO scores from 500 to super prime, the two companies said. PowerPay also has home improvement programs with 12-, 18- and 24-month terms, no interest and no payment promotions.