Dr. Douglas Tucker, a doctor specializing in pain medicine, had seen patients put off care because they couldn’t afford a deductible or an upfront cost for a necessary procedure. That challenge has become even more critical in recent years as more patients have higher deductibles or out-of-pocket limits to make their monthly payments more affordable.
“That’s where his idea came from,” said PockitPay Chief Operating Officer Steven Namanny. “The ‘buy now, pay later’ idea isn’t new. Many people know about Affirm, for example, but it’s primarily to buy goods from places like Target, Walmart and Amazon. It’s not there to help you cover your insurance deductible.”
PockitPay aims to help fill that gap for patients and providers. With a QR code and lending information available at the reception desk of clinics that partner with the service, patients can apply using their phone and quickly learn whether PockpitPay will finance their out-of-pocket medical expenses. If the answer is “yes,” then the procedure can go ahead, and PockitPay will pay the medical provider once they complete it.
Chief Technology Officer Ben Hubbard visioned and oversaw the app’s development, which has gone through a few iterations. With their initial beta version, the team realized they weren’t getting enough information to make good financing decisions, and they ended up making some bad loans. They chalked those up to a learning experience—the app now can interface with TransUnion for a soft-pull credit check or use the Plaid service to analyze the credit risk based on an analysis of the patient’s checking account.
“Clinics are very excited about this,” Namanny said. “It empowers clinics to focus on being clinics instead of being financial services companies.”
When PockitPay applied to the Mississippi Seed Fund for a “proof-of-concept” $10,000 award, the board decided to award them more—$25,000—essentially saying they’ve already proved the concept and needed to roll it out. With their Seed Fund award and requisite matching funds, the 2023 plan is to convince more clinics in Mississippi to adopt the tool.
“By December 2023, my top-of-mind goal would be to have $500,000 originated—maybe $250,000 is more realistic—with a good group of core providers,” Hubbard said. He notes that their strategy is to create “an effective and competitive ‘buy now, pay later’ option for patients in the medical niche.” The app is to be an elegant solution they’ve designed to meet the needs of medical offices and patients.
“The biggest surprise is how much people need PockitPay,” Hubbard said. “We knew this need existed, but it’s still surprising.”
Namanny said that the PockitPay team is excited to be part of the Mississippi entrepreneurial ecosystem and appreciates the work that Innovate Mississippi and the Mississippi Seed Fund make possible. And he’s looking to a future with more collaborations on the horizon.
“We hope to be trailblazers in Mississippi. Our ultimate goal is to be a startup studio in the medical sector, of which PockitPay is just one of the startups,” he said.
