Update 31 May, 2021: Tyro completes acquisition of Medipass Solutions, see the latest ASX announcement here.
Medipass Solutions announces acquisition by leading Australian fintech, Tyro Payments.
Medipass Solutions today announced it has been acquired by leading Australian fintech Tyro Payments. Medipass will merge with Tyro’s health practice to create Australia’s leading healthcare payments platform.
Medipass Chief Executive Officer, Jonathan Davey, said, “this merger will create the new global benchmark in simple, transparent healthcare claims and payments.”
“Combining Medipass’ digital healthcare payment and claiming solution with Tyro’s leading healthcare terminal business will deliver a unified offering and a world-class experience. Patients, practitioners, health funds and statutory payers will be connected in one simple and secure platform. The combined business will provide an integrated claim and pay solution to all health practitioners and bring much needed transparency and simplicity to the A$130bn in payments and claims that are made every year.”
Medipass was founded in 2016 and enables healthcare providers to quickly get paid from a range of insurers, including Medicare, private health insurers, Insurance & Care (icare) NSW, Department of Veterans’ Affairs and more. The solution integrates into 17 cloud-based practice management and booking systems. Medipass has grown significantly over the last 4 years, driving change and adoption of digital solutions to healthcare providers and creating administration efficiencies. This growth was further accelerated with the rapid change in healthcare delivery models in the last year.
Tyro’s health business provides terminal claiming for Private Health Insurance and Medicare as well as payment services. Tyro has been working with the health sector for over a decade, and integrates with 39 Practice Management Software systems across General Practice, Allied Health, Dental, Pharmacy and Specialists.
For an entirely digital experience, Medipass offers solutions that require no hardware or terminals, but healthcare providers and ultimately their patients want solutions that cater to all situations including where they want to tap, swipe or insert a card. The unified Tyro and Medipass proposition will deliver the strength of Tyro’s existing terminal solution, including its customer base and software integrations, with the leading digital claiming technology, customer base and software integrations of Medipass.
As the healthcare ecosystem moves towards a digital future, we believe that a combined Tyro and Medipass payments offering will cater for both traditional in-practice and emerging ways that healthcare is being delivered, including telehealth and in-home, and the operational processes built around them.
Jonathan Davey will lead the merged entity with Medipass Executives Pete Williams and Adrian Perillo assuming critical leadership roles.
Tyro CEO, Robbie Cook, said, “we are excited about the opportunity to work with Medipass, and ultimately to leverage the experience and capability of both companies to develop solutions that create efficiencies across the entire health care system. The Medipass team has built a solution unmatched in its capability, with a strong focus on customer service, which is critical as healthcare businesses make the shift to digital. Coupled with Tyro’s leading terminal solution, we have a unified proposition that will meet all of a healthcare provider's payment needs, now and well into the future”.
Medipass is an Australian health fintech, based in Melbourne. The company was established on the belief that a better health system demands better ways to connect and pay. Medipass builds digital health-grade payment solutions, connecting patients, practitioners and payers in ways that drive efficiency and better care experiences.
Medipass has grown to be Australia’s leading digital health payments platform. For healthcare providers and partners, Medipass offers more digital claiming options than any other platform, including government funders, private health insurers and direct gap payments. With deep industry partner integrations and strong investment in integrating third party systems used by providers to make digital claiming a native and streamlined process, Medipass is closely aligned to healthcare provider workflows.
Tyro is a technology-focused and values-driven company providing Australian businesses with payment solutions and value-adding business banking products. The company provides simple, flexible and reliable payment solutions as a merchant acquirer, along with complementary business banking products.
For the more than 36,700 Australian merchants who chose to partner with Tyro at 31 December 2020, the company processed more than $20.1 billion in transaction value in FY20 and a record $12.1 billion in H1 FY21. In FY20 the company generated $93.5 million in gross profit (H1 FY21 $61.2 million), originated $60.1 million in loans (H1 FY21: $2.6 million) and held merchant deposits totalling $50.5 million (H1 FY21: $104.0 million).
Tyro is Australia’s fifth largest merchant acquiring bank by number of terminals in the market, behind the four major banks.
The business was founded in 2003 with a goal of being the most efficient acquirer of electronic payments in Australia. Tyro has a track record of innovation, creating purpose-built solutions and being first to market. This approach saw the company become the first technology company to receive an Australian specialist credit card institution licence in 2005. In 2015 that licence was replaced by the award of an Australian banking licence, making Tyro the first new domestic banking licensee in over a decade.
Payments are at the core of Tyro’s business, using its proprietary core technology platform to enable credit and debit card acquiring. This offering is enhanced by features purpose-designed for those merchants who choose to partner with the company, including Point of Sale systems integrations, least-cost routing (Tap & Save) and alternative payment types such as integrated Alipay. While traditionally focused on in-store payments, Tyro has recently expanded into eCommerce.
Further, Tyro provides value-adding solutions to its partners, such as loans in the form of merchant cash advances and fee-free, interest-bearing merchant transaction accounts.
Tyro has a team of more than 500 people, approximately half of whom are in technology roles.
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