PayZen, a healthcare Fintech, reports that it has raised $20 million in equity capital alongside $200 million in a credit facility.
Payzen’s mission is to help patients pay for healthcare at “any stage in the patient’s journey.” The service was created due to the increase in cost assessed directly to patients as a greater share of payments have been pushed over to the individual. PayZen offers a card that is accepted anywhere that allows for debit payments. For healthcare providers, PayZen strives to provide the “next generation of patient financing.” Anyone that has had an encounter with a hospital will understand the current system is broken and in dire need of a fix.
PayZen said that the equity component was led by 7wireVentures, and Viola Credit provided a $200 million warehouse credit facility to support continued market expansion.
The funding follows “significant” and rapid demand for its services.
Itzik Cohen, co-founder and CEO at PayZen, stated:
“This exciting round is a testament to PayZen’s product innovation and the immense need for more affordable payment options for patients who are trying to pay their medical bills. Healthcare equity and affordability is a foundational problem in the U.S. Too many Americans have delayed or foregone getting the care they need because they aren’t offered an affordable way to pay. At PayZen, we’re determined to help fix this broken system.”
7wireVentures co-founder and Managing Partner, Lee Shapiro, will join PayZen’s board. Shapiro issued the following comment:
“With medical debt being the leading cause of bankruptcies in the U.S., and with so many people without the cash available to meet emergent health needs, there is a pressing need for a solution to address this challenge. PayZen is directly aligned with our beliefs at 7wireVentures in the importance of using technology-enabled services to resolve the hassles consumer face in accessing health and care. We are honored to work with this great team on this important mission.”