NAB is set to acquire healthcare claiming and payments platform LanternPay, owned by Australian fintech InLoop, for an undisclosed sum.
The proposed acquisition, which is subject to regulatory approval, would allow NAB to augment its Health Industry Claims and Payments Service (HICAPS) with LanternPay's technology.
LanternPay's platform is used by the healthcare, disability, insurance and aged care sectors, and was "purpose-built to standardise the claims and payment experience for all providers of services to government and private healthcare schemes," NAB said in a statement.
The bank said that integrating LanternPay with HICAPS would "simplify administration and increase payment options when visiting a healthcare provider."
"Australian healthcare payment systems have been cumbersome - resulting in disjointed payment experiences for patients and complexity for healthcare providers," NAB’s group executive for business and private bank Andrew Irvine said.
“Integrating NAB’s HICAPS with LanternPay technology will over time deliver a seamless digital customer experience - with real-time approvals and faster payments for medical, allied health and other providers."
Co-founder and managing director for InLoop Geoff Austen said the acquisition by NAB means “more Australians will benefit from simple transactions when they visit the dentist, doctor or therapist.”
Austen, who is the largest InLoop shareholder after Macquarie Capital, told iTnews he will be involved with LanternPay and HICAPS post transition and will remain managing director of InLoop.
Westpac once held a 10 percent equity stake in InLoop, but Austen said the bank had since scaled back its shares.
Austen said while the transaction is still subject to conditions including regulatory approvals, “we are confident of receiving these and completing [the acquisition] within the first quarter of this year.”
The transaction will provide InLoop with resources to grow its other brands, inclduing Flexischools, Clickability and Nuonic.
“The additional time and resources stemming from completing this transaction will be invested into growing these businesses," Austen said.