"Buy now, pay later" companies are turning to niche sectors like healthcare to secure their economic future, according to a July 22 report from The Wall Street Journal.
Plans that currently allow shoppers to pay in installments for items like clothing can be repurposed for many common health treatments, according to Brian Schneiderman, chief strategy officer at Australian Openpay Group.
Openpay has linked products to specific procedures to mitigate the risk of missed customer payments. Categories include dentistry, where patients often have a longstanding relationship with health providers and avoid more frivolous procedures.
Healthcare is an attractive market because payment plans can be tied to the continued provision of treatment, making it in the consumer's interest to meet repayments.
Nandan Sheth, chief executive of New York City, N.Y.-based Splitit, said the cost of healthcare treatments makes them attractive relative to retail goods.
"When we go and create a partnership with a payment processor, the first area that we want to target—or we’re trying to convince them to target—is healthcare," Mr. Sheth said.
Larger companies like Afterpay and Klarna remain focused on partnering with main-street retailers.