The increasing popularity of buy now, pay later (BNPL) payment solutions is marking a new phase in consumer purchasing behaviors, especially in the healthcare sector. Prescription savings platform GoodRx, in collaboration with various retail pharmacies, is set to offer Affirm’s pay-over-time option to consumers. This initiative allows individuals to pay for select medications in installments, aiming to ease financial burdens associated with healthcare expenses. As BNPL methods gain traction in other domains, its extension into pharmaceuticals reflects a broader trend of providing consumers with flexible payment options.
How Does GoodRx’s New Payment Option Work?
Approved consumers will have the opportunity to choose Affirm’s payment option for select medications available through participating retailers on the GoodRx platform. This move is part of GoodRx’s effort to streamline the purchasing process through its eCommerce strategy. Scott Wagner, Interim CEO of GoodRx, highlighted the benefits of this technological solution, emphasizing that it offers financial flexibility and helps individuals meet deductibles.
“Through this new technology solution, we’re offering a unique capability that will help people access their medications,”
Wagner stated.
Which Pharmacies Are Participating?
Hy-Vee, a grocery retailer with more than 275 pharmacies, is one of the first partners to join this program. When customers choose Hy-Vee as their pharmacy on GoodRx, the system checks prescription validity and medication inventory. If eligible, customers can select a monthly payment plan with Affirm, making the medicine purchasing process more manageable. Senior Vice President of Pharmacy at Hy-Vee, Angie Nelson, explained their participation:
“We are excited to work with GoodRx to offer this new payment solution to Hy-Vee Pharmacy patients as we continue efforts to remove healthcare barriers.”
The BNPL approach has been gaining attention in the health and beauty sectors, with one-third of consumers opting for installment payments, according to a study by PYMNTS Intelligence and AWS. In a related development, Rite Aid has partnered with Klarna to offer similar BNPL services, though limited to non-prescription items, showcasing a significant shift in retail payment offerings.
Rite Aid’s partnership with Klarna presents an alternative approach within the same sector, offering BNPL options on everyday essentials while excluding prescriptions. This reflects a growing interest from retailers in providing these flexible solutions, as noted by Affirm CEO Max Levchin, who observed a rising trend among retailers to offer BNPL options as consumer demand grows.
The integration of BNPL in the healthcare and pharmacy industries could significantly alter the way consumers manage their medication expenses. This payment flexibility may lead to increased medication adherence by reducing upfront costs, ultimately benefiting consumer health outcomes. By partnering with Affirm, GoodRx is taking a step towards accommodating modern payment preferences and addressing financial challenges associated with healthcare.
