One of the main challenges faced by pet owners is the high cost of veterinary care. While many people consider their pets part of the family, they may not have the financial means to cover the cost of treatment when their pet becomes sick or injured.
In 2018, American consumers spent a total of $70 billion on their pets, with veterinary expenses making up a significant portion of that spending at $18 billion. This number is expected to increase to over $20 billion by 2024. While routine check-ups and medical services for healthy pets typically cost between $200 and $400 per year, the costs can quickly escalate in the event of an illness or injury requiring extensive medical treatment or surgery.
This can be particularly difficult for pet owners who may not have the financial resources to cover these unexpected expenses. Founder and CEO of Scratchpay, John Keatley, notes that while these high costs can be a sign of improvements in veterinary science, they can also be a source of stress and financial strain for pet owners.
Scratchpay aims to alleviate this burden by offering payment plans that allow pet owners to pay for their veterinary bills over time. Scratchpay is a financial technology company that provides affordable and accessible payment plans for veterinary care.
Market for Scratchpay
Scratchpay was not the first company to offer financing options for veterinary care, but it saw an opportunity to improve upon the existing options. Synchrony’s Care Credit platform was the largest player in the market at the time, which was large but not necessarily effective for veterinary practitioners or patients. Care Credit had high credit requirements and high APRs, which led to many customers being turned away and veterinary offices experiencing difficulty managing and administrating the product.
- CareCredit functions similarly to other credit cards in that it can be used to pay for healthcare expenses for your pet at participating locations, subject to a credit limit. You are required to make payments on your balance, including any applicable interest.
Scratchpay recognized what was needed in this space. It developed a different approach, offering to provide a fair and transparent financing option, even if it included interest, that was better suited to the needs of the veterinary care industry.
- Scratchpay allows you to apply for a loan to cover veterinary expenses, rather than using a physical card. The loan amount is then paid directly to your veterinarian. If you need additional financing for future expenses, you can apply for additional loans and have multiple accounts open at the same time.
It provides a simple platform that enables pet owners to easily apply for financing on their phone, with loan amounts up to $10,000 that can be paid back in installments over three, six, or 12 months. By retaining all loans on its own balance sheet and using its internal algorithmic model to evaluate risk, Scratchpay is able to approve a wider range of applicants, including those with prime credit who may be eligible for no-interest options.
Scratchpay’s financing options are designed for single procedures, allowing the company to assume a specific, limited risk for each customer. This approach enables Scratchpay to offer a transparent financing solution that helps pet owners afford the care their animals need without the financial burden of paying upfront.
Scratchpay typically offers a lower credit limit than CareCredit because the loan amount is based on a specific veterinary expense, rather than being available for general use. Additionally, the ability to apply for multiple loans at the same time may reduce the need for a higher credit limit. The application criteria for Scratchpay are similar to those for major credit cards, including the requirement for a good FICO credit score.
Scratchpay has received praise for its innovative approach to addressing the financial barriers faced by pet owners. The company has received funding from top investors, including Kleiner Perkins and 8VC, and has been featured in numerous media outlets, including Forbes, CNBC, and TechCrunch.
Scratchpay is a purr-fect solution for pet owners who are worried about the cost of veterinary care. With its variety of payment plans and user-friendly platform, Scratchpay makes it easy for pet owners to access the care their furry friends need, without the financial burden of paying for treatment upfront. So next time Fido or Fluffy needs a check-up, don’t let vet bills get in the way – let Scratchpay take the reins and make pet care more paw-sible.