EQS-News: LM PAY: Innovative Financing Options for Medical and Aesthetic Treatments in Poland

LM PAY: Innovative Financing Options for Medical and Aesthetic Treatments in Poland

• Limited insurance coverage drives patients to the private healthcare sector
• LM PAY alleviates financial challenges through attractive offers
• High acceptance among customers
• Expansion into new markets planned

Warsaw, April 1, 2024 – LM PAY, a leading Polish FinTech company, offers tailored financing solutions for medical and aesthetic services. Given the high costs of private healthcare and limited insurance coverage in Poland, LM PAY facilitates access to essential treatments through flexible financing models.

The Polish National Health Fund (NFZ) does not cover many medical services, unlike the German health insurance model. Additionally, waiting times for subsidized services are often very long. According to the NFZ, patients in Poland currently wait an average of up to 18 months for certain specialist appointments. Specifically, waiting times include 4.2 months for general treatments, 22 months for rehabilitation measures, and 17 months for knee joint implants. In 2023, waiting times for public medical services in Poland increased by 20%.

Financing Needs in the Private Healthcare Sector

As a result, many patients seek faster alternatives in the private sector. Although costs are higher - an average dental implant treatment costs around PLN 5,000 to 10,000 (approximately EUR 1,100 to 2,200) - access to treatment is significantly easier. However, these costs often pose financial challenges for patients. This is where LM PAY steps in, offering an innovative financing solution for medical treatments.

Growing Acceptance of Financing Options

Alongside the increasing demand for medical and aesthetic treatments, the acceptance of credit solutions for services is also growing in Poland. While instalment payments were traditionally used for consumer goods, financing healthcare services is gaining significance. According to recent market analyses, more than 30% of Polish patients already use financing options for medical treatments. LM PAY enables patients to access treatments through flexible instalment plans. The financing solutions are available directly in clinics, allowing patients to receive immediate financing while medical providers secure guaranteed payments.

Efficient and Customer-Friendly Processing

Thanks to FinTech solutions, the entire credit process is simple, fast, and requires minimal formalities. Seamless integration into medical practices and clinics ensures smooth processing. The average loan amount for the most commonly financed medical services (“MediPay”) is PLN 1,800 (approximately EUR 430), repayable over 1 to 12 months. For more expensive medical procedures (“MediRaty”), the average loan amount is PLN 5,600 (approximately EUR 1,300), with repayment terms of up to 36 months. In 2024, from January to September, LM PAY served 29,400 customers who opted for financing - a 17.6% increase compared to the previous year. Additionally, customer satisfaction remains high, with 30.1% of customers using LM PAY’s financing offers repeatedly, partly because some treatments require multiple sessions.

High Demand for Aesthetic and Dental Treatments

The demand for aesthetic medicine and dental treatments is continuously increasing. Treatments such as Botox, fillers, laser therapy, and body contouring cost between PLN 1,500 and 8,000, which translates to approximately EUR 330 to 1,750 per session. High-quality dental treatments, including implants, orthodontics, and root canal procedures, are similarly expensive. These procedures often present a significant financial burden. However, LM PAY finances not only beauty and health services but also psychological consultations to promote overall well-being.

Expansion Plans and New Products

The company is on a growth trajectory. In addition to its home market in Poland, LM PAY plans to enter the Romanian market, which has similar healthcare sector structures. Relevant licenses have already been applied for. In Romania, the average costs for private medical treatments can amount to up to 40% of the monthly average income, further increasing the need for flexible financing solutions.

Additionally, LM PAY is expanding its business with new products. The introduction of the LM PAY card enables flexible payment options in medical facilities. Furthermore, a strategic partnership has been established with a leading insurance broker to offer auto insurance financing and develop activities in the InsurTech sector. These developments underscore LM PAY’s innovation and continuous growth.

About LM PAY:

LM PAY S.A. is a rapidly growing FinTech company specializing in embedded finance solutions for healthcare and aesthetic treatments. LM PAY’s innovative platform seamlessly integrates into the workflows of over 13,000 clinics and beauty salons in Poland. It simplifies financing for patients while ensuring immediate payments to providers, making processes more efficient and seamless.

The company collaborates with leading market players and has over ten years of experience in the Polish market. With a listing on the Düsseldorf Stock Exchange (ISIN: PLLMPAY00016), LM PAY is well-positioned for future expansion. Key growth areas include further developing the B2B partner network in Poland and diversifying embedded finance solutions into new industries such as auto insurance and legal services.

 

Investor Relations & Financial Media in Germany:

Meister Consulting GmbH

Tobias Meister

phone +49 (0) 2983 908121

mobile +49 (0) 170 2939080

meister@meisterconsult.com

 

Investor Relations & Financial Media in Poland:

LM PAY S.A.

Grzegorz Pieszak

Phone +48 881 780 994

grzegorz.pieszak@lmpay.pl