“AxiaMed is excited to join Bank of America,” said Randal Clark, founder and CEO of the fintech startup business. “AxiaMed strives to ensure that our industry-leading payments platform can be leveraged by our partners and their clients, many of whom currently use numerous products and services of Bank of America, to provide a seamless and secure end-to-end patient payment experience.”
The move comes as part of a larger initiative by Bank of America to integrate merchant services into its platform. In 2019, the financial services company announced the dissolution of a long-term joint venture between its business and First Data, an Atlanta-based merchant services company, after it was acquired by Fiserv earlier the same year. Though the decade-long partnership between Bank of America and Fiserv’s First Data officially closed in June 2020, the financial services company and the payment processing business both agreed to provide existing users of Bank of America Merchant Services with uninterrupted service through June 2023.
Secure Payments for Patients
AxiaMed was established by Clark in 2015. The fintech startup offers software solutions to healthcare providers with an application programming interface (API) that is easily integrated into existing healthcare platforms.
AxiaMed uses an omnichannel payment gateway to offer patients a variety of payment methods to make payments simple and convenient. The platform built by the startup fintech business processes credit, debit, ApplePay, GooglePay, check guarantee, automated posting, and several other payment types. By offering a suite of payment options to patients, the fintech startup aims to increase collections by healthcare providers. Furthermore, AxiaMed’s software utilizes point-to-point encryption to secure payments and prevent data breaches.
“We are adding a talented team that brings great domain expertise and technology, and we’re excited to have them join Bank of America,” said Mark Monaco, head of enterprise payments at Bank of America. “Working together, we can leverage our joint expertise and capabilities to deliver a comprehensive range of payment and settlement solutions to our healthcare clients and their patients.”
Prior to the acquisition, the fintech startup raised over $15 million from investors, including Health Enterprise Partners and Nashville Capital Network.
Building Out the Bank
According to projections from the Centers for Medicare and Medicaid Services (CMS), national health spending is expected to grow at an average annual rate of 5.4%, with spending expected to reach $6.2 trillion by 2028. Bank of America’s recent acquisition further enhances the company’s ability to capitalize on the enormous market potential of the healthcare industry.
About the Author
James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.