May 17, 2019 / 2:33 PM / a year ago

JPMorgan to acquire healthcare payments company InstaMed

A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files

NEW YORK (Reuters) - JPMorgan Chase & Co said Friday it is acquiring InstaMed, a U.S. healthcare payments technology company.

The deal gives JPMorgan the chance to add a new, niche business sector to its wholesale payments business, which the bank has steadily expanded in recent years.

JP Morgan is paying more than $500 million for the business, CNBC reported earlier on Friday. A spokeswoman for the bank declined to comment on the size of the deal.

InstaMed did not immediately respond to request for comment.

“We’ve made significant investments in our wholesale payments business over the years and this acquisition will give us a unique advantage in one of the fastest growing sectors,” Takis Georgakopoulos, global head of the bank’s wholesale payments, said in a statement.

Founded in 2004, InstaMed uses a private, cloud-based platform to process payments between patients, healthcare providers and payers.

Reporting By Elizabeth Dilts; editing by Jonathan Oatis

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