Chase expands digital health care payments via InstaMed acquisition
JPMorgan Chase is buying InstaMed, a cloud-based health care payments platform that has seen significant growth in recent years from consumer medical payments.
The price of the deal was not disclosed in JPMorgan's announcement, but it paying more than $500 million for InstaMed, according to CNBC. InstaMed, founded in 2004, is based in Philadelphia and has offices in Newport Beach, Calif.
InstaMed’s platform was designed to drive paper bills and payments out of the system, and JPMorgan said in its press release Friday that it hopes to gain share in the $3 trillion health care payments market.
“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,” Takis Georgakopoulos, global head of wholesale payments at JPMorgan, said in the release.
InstaMed claims annual revenue of $94 billion and its revenue reportedly increased 27% year over year in 2018.
Before the deal with JPMorgan, InstaMed drew about $134 million in funding in about a dozen rounds.