Splitit has expanded its interest-free installment payments technology to health care providers, enabling their patients to receive instant approval to finance health care costs through their Visa or MasterCard credit cards on file.
The move is New York-based Splitit's first venture into health care, as it most recently added its cloud-based payment technology as a free plugin for e-commerce merchants using the WooCommerce platform.
Splitit enables merchants to offer customers monthly installment payments through Visa or MasterCard credit cards without having to pay interest. The merchant essentially covers the interest for the customer, while also paying Splitit a processing fee, with the tradeoff being increased sales.
Splitit Healthcare works for providers in dentistry, elective surgery, weight loss surgery and hearing, among others. The financing solution allows patients to choose the number of months in which to make interest-free payments on their credit cards, while receiving all of their card benefits.
"Today, about a quarter of working-age adults in the U.S. struggle to pay their health care bills, leading many people to avoid future treatment and resulting in huge financial losses for medical and dental practices," Alon Feit, CEO of Splitit, said in a Jan. 28 press release. "Splitit Healthcare is changing the paradigm by making medical expenses more manageable and affordable for patients while helping practices maximize revenue and offer a better service for their patients."
Medical practices can choose between two pricing plans. They can receive the full amount for the treatment up front from Splitit with a discount fee of 7.5% plus $1 per installment for 12 interest-free payments, or receive payment monthly at a fee of 1.5% of the purchase plus $1.50 per installment.
Splitit, formerly known as PayItSimple, launched its services in the U.S. in late 2014 when opening its New York office. Its development and research base remains in Herzliya, Israel.