The angel group, dedicated to innovation in animal healthcare, has added another startup to its growing investment portfolio.
The Veterinary Angel Network for Entrepreneurs (VANE) has announced an investment in PawPay, a veterinary payment technology company working to eliminate one of the most frustrating aspects of pet insurance: requiring pet owners to pay the entire veterinary bill upfront before receiving reimbursement.
The investment makes PawPay the newest company in VANE’s animal health portfolio. It also gives PawPay access to a network of veterinarians, investors, and industry leaders as the company expands relationships with veterinary practices and pet insurance carriers.
PawPay’s point-of-care payment platform enables insured pet owners to pay only their deductible and coinsurance when receiving veterinary care.
The veterinary clinic receives the full payment immediately, while PawPay manages the reimbursement process with the pet insurance company.
The platform helps address, for some, the significant financial barrier of having insurance coverage but not having the cash or available credit needed to pay a large veterinary bill.
PawPay Activates Pet Insurance at Checkout
Traditional pet insurance typically operates through a reimbursement model.
Pet owners with insurance pay the veterinary clinic in full, submit a claim, and then wait for the insurance company to reimburse the covered portion of the expense.
Depending on the cost of treatment and the length of the claims process, pet owners may be responsible for advancing hundreds or thousands of dollars.
PawPay changes that process by verifying insurance coverage, calculating the pet owner’s financial responsibility and paying the veterinary practice at checkout.
The company then manages claims submission, payment processing and reimbursement with the insurance carrier.
“One of the biggest frustrations for insured pet owners is having to pay the full cost of care upfront despite faithfully paying insurance premiums,” said Peter Glassman, DVM, co-founder of VANE.
Glassman went on to say that PawPay’s model creates advantages across the veterinary care ecosystem. Pet owners gain more immediate access to insurance benefits, veterinary practices receive prompt payment, and insurers may benefit from a more efficient claims process.
Reducing Financial Barriers to Veterinary Care
PawPay positions its platform as an alternative to veterinary financing products that may require pet owners to take on additional debt.
Rather than issuing a loan, PawPay helps activate insurance benefits the pet owner already has at the time of treatment.
The clinic receives payment in full, even while the insurance reimbursement is being processed. PawPay also works directly with the pet owner if some or all of the claim is later declined.
“PawPay is about removing financial friction at the moment when pet owners need care most,” said David Franklin, co-founder and CEO of PawPay.
Simplifying Veterinary Practice Workflows
In addition to improving the payment experience for pet owners, PawPay is designed to limit the administrative burden placed on veterinary practices.
Veterinary teams can upload or email the invoice and relevant medical records from their practice information management system. PawPay then manages coverage analysis, claim submission, payment processing and insurer reimbursement.
The company says its platform is free for veterinary practices to join and offers transaction fees that are lower than those charged by traditional credit card processors.
PawPay also provides a digital portal, staff training and customer support to help clinics incorporate the service into their existing checkout processes.
VANE Supports Animal Health Innovation
VANE’s members invest individually in selected startups while also providing mentorship, veterinary expertise and industry connections.
The organization’s investment in PawPay reflects growing interest in technologies that improve both the financial and operational sides of veterinary medicine. It is part of their commitment as a community to support early-stage innovation in animal health.
With support from VANE’s network, PawPay plans to continue expanding its relationships with veterinary practices, insurance companies, and other participants in the pet healthcare ecosystem.
The investment represents another step toward modernizing veterinary payments while helping pet owners use their insurance benefits when they need them most.
