What Scratch does

Scratch Financial, Inc. (DBA Scratchpay) is a two-sided fintech platform serving veterinary and human-healthcare providers and their patients in the United States and Canada. Founded in 2016 in Pasadena, California by John Keatley (CEO, formerly CFO at Klarna and Green Dot) and Caleb Morse (President), the company operates two core products: Scratch Pay, a consumer-facing closed-end installment loan product ($200–$10,000, 12- or 24-month terms, 0–36% APR, $15 down, soft-pull eligibility, with an Interest Waived Offer for 0% effective APR if repaid within 6 months), and Scratch Checkout, an all-in-one merchant payment-processing platform with flat-rate pricing, optional credit-card surcharging, recurring/wellness plan billing, mobile terminals, and direct integration into leading Practice Information Management Systems (PIMS). U.S. loans are issued through partner bank WebBank under NMLS ID 1582666; Canadian loans are issued directly by Scratch Financial, Inc. ex-Quebec.

Underlying technology is a cloud-based, omnichannel processing and lending stack with PCI DSS Level 1 service-provider compliance, direct PIMS reconciliation, GLBA/CCPA-compliant data handling, and Stripe-powered disbursements for the Manufacturer Offer Program. Distribution is omnichannel: a self-serve borrower website and mobile apps (iOS/Android), direct inside sales to clinics, partner channels (Veterinary Hospitals Association, MWI Animal Health, Blue Rabbit, Thrive Pet Healthcare, Snout School), and co-marketing with Freddie Mac's CreditSmart credit education program.

The business model derives revenue from (1) merchant payment-processing fees on Scratch Checkout transaction volume, (2) installment loan interest income and fees on Scratch Pay closed-end loans (12- or 24-month, 0–36% APR), (3) manufacturer partner program fees on the pet-health rebate/coupon engine, and (4) debt-financed lending capacity sourced from facilities including a 2019 Credit Suisse $50M debt facility and a 2026 Victory Park Capital purchase facility. To date, Scratch has raised approximately $73 million across a 2018 Series A ($6.4M), a 2019 Series B ($15M equity + $50M debt), and a 2022 Series C ($35M, Norwest-led), and processes nearly $1 billion in annual patient payments across more than 17,000 veterinary practices and 14,000+ healthcare practices in the U.S. and Canada.

Name

Scratch

Legal name

Scratch Financial, Inc.

Website

https://scratchpay.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

51–100 employees

Short description

Scratch Financial (DBA Scratchpay) is a two-sided fintech platform that pairs closed-end installment patient financing with integrated merchant payment processing for veterinary and human-healthcare practices and their patients in the U.S. and Canada.

Ownership category

akta.pro rank

Headquarters

HQ city

Pasadena

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Merchant payment processing fees: Recurring transaction-based revenue from veterinary and medical practices using Scratch Checkout. Predictable flat-rate pricing per transaction; practices save over $10,000/year vs. legacy processors based on internal data ending 11/1/2023. Includes subscription/wellness recurring billing.
2. Installment loan interest income: Interest on closed-end installment loans (12- or 24-month terms, $200–$10,000, APR 0–36%) originated to borrowers through WebBank in the U.S. and Scratch Financial, Inc. in Canada. Interest Waived Offer allows 0% effective APR if paid within 6 months.
3. Debt-financed lending capacity (purchase facility): Capital partner-funded lending capacity through a purchase facility agreement with Victory Park Capital (announced May 2026) to scale veterinary healthcare financing; historically also financed via Credit Suisse ($50M debt in Series B).
4. Manufacturer Offer Program Fees: Program fees deducted from clinic reimbursements for administering manufacturer rebates/coupons on pet health products; charged by Scratch where there is an existing partnership with the manufacturer.

Pricing tiers

Go-to-market motion4 records

Distribution channels7 records

Marketing channels8 records

Core offering

Scratch Financial, Inc. (DBA Scratchpay) operates a two-sided fintech platform that pairs Scratch Pay, a consumer-facing closed-end installment loan product ($200–$10,000, 12- or 24-month terms, 0–36% APR, $15 down payment, soft-pull eligibility check) issued in the U.S. through partner bank WebBank and in Canada by Scratch Financial, Inc., with Scratch Checkout, a cloud-based, PIMS-integrated merchant payment processing platform for veterinary and human healthcare practices. Together the products connect medical practices and their clients for both transaction processing and patient financing, with U.S. plans supported by an NMLS state-licensing footprint (NMLS ID 1582666).

Product overview

Scratch Financial, Inc. (DBA Scratchpay) operates an integrated, two-sided fintech platform that pairs a merchant payment-processing product (Scratch Checkout) for veterinary practices with a consumer-facing patient-financing product (Scratch Pay / Scratchpay) for pet owners and human healthcare patients. The platform is augmented by promotional features such as the Interest Waived Offer (0% interest if paid within 6 months), a Subscription Program for recurring/wellness billing, the Manufacturer Offer Program for pet-health product rebates surfaced at checkout, the Credit Education Program (powered by Freddie Mac's CreditSmart®), and the retired Take 5 bi-weekly plan. Borrowers access the platform through the Scratchpay Mobile App on iOS and Android, while U.S. loan plans are issued by partner bank WebBank and clinic reimbursements flow through Stripe; the company's stated footprint is "over 17,000 providers" (homepage, Sept 2025) across the U.S. and Canada.

Differentiator

Problem solved

Functional benefit

Brands

• Scratch Checkout: Integrated payments platform for veterinary practices, including surcharging, recurring payments, email/text-to-pay, mobile terminals, and PIMS integration.
• Scratch Pay Plans
• Scratch Financial Manufacturer Offer Program

Products and services

• Scratch Pay (Scratchpay) Care-now-pay-later patient financing offering simple, friendly payment plans with 12- or 24-month closed-end installment loans ranging from $200 to $10,000 at 0–36% APR, with a $15 down payment, soft-credit eligibility checks, and the Interest Waived Offer (0% effective APR if repaid within 6 months). Plans in the U.S. are issued by WebBank and in Canada directly by Scratch Financial, Inc. Target users are U.S. and Canadian pet owners and human healthcare patients who need to spread the cost of veterinary, dental, optometry, chiropractic or other medical care.
• Scratch Checkout All-in-one cloud-based payments platform for veterinary hospitals supporting in-person and digital payments, mobile terminals, email-to-pay, text-to-pay, recurring subscriptions and wellness plans, automated AR collections, predictable flat-rate pricing (no setup or cancellation fees), optional credit-card surcharging, PCI Level-1 compliance, and direct reconciliation with leading Practice Information Management Systems (PIMS). Target buyers are veterinary, dental, optometry, chiropractic and other medical practices.
• Scratch Manufacturer Offer Program Program in which Scratch partners with pet-health product manufacturers to surface manufacturer rebates, coupons and discounts to pet owners at the point of sale via Scratch's technology platform, with monthly Reimbursements to clinics paid through Stripe. Enrolled U.S. clinics must agree to a Stripe Connected Account Agreement to receive reimbursements. Target users are pet-health manufacturers and the veterinary clinics that distribute their products.
• Scratchpay Savings Bank-account product created in partnership with Green Dot Bank to help pet parents save for veterinary expenses; co-developed with Green Dot Bank and covered by the May 2019 Nilson Report. Target users are U.S. pet parents seeking to pre-fund veterinary care costs.

Quantifiable outcome

• $10,800 average annual savings per veterinary practice switching to Scratch Checkout (based on monthly $900 average savings over 12 months ending 11/1/2023)
• +4 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature6 records

Partnerships

Ten partnerships are on record, tiered major strategic / dental-vertical partner, mid-tier / product co-development, strategic industry investor, flagship / multi-year enterprise customer, major channel / co-marketing partner, mid-tier / association channel, mid-tier / distributor channel, minor / co-marketing, core infrastructure partner and core / flagship technology integration.

• Wellfit Technologies, Inc.major strategic / dental-vertical partnerStrategic or Co-development Partner · 1 January 2023Partnership announced 2023 (cited in 2025 dental fintech market analysis) to deliver flexible, integrated payment plans for dental patients nationwide, and specifically to embed pay-over-time solutions inside dental practice workflows.
• Green Dot Bankmid-tier / product co-developmentStrategic or Co-development Partner · 1 May 2019Co-developed a savings bank account product ('Scratchpay Savings') to help pet parents save for veterinary care; profiled in the May 2019 Nilson Report (covers card and mobile payment industry).
• Mars Petcarestrategic industry investorStrategic or Co-development PartnerMars Petcare is cited as a 'world class strategic investor' in Scratch (per Struck Capital / Forbes coverage); integration of Scratch was in 1 out of every 10 U.S. vet facilities at time of investment.
• Thrive Pet Healthcareflagship / multi-year enterprise customerStrategic or Co-development PartnerMulti-year contract to bring Scratch's cloud-based, omnichannel payment processing across Thrive Pet Healthcare's network of 350+ veterinary practices. Reported by AP News and featured in Scratch press page.
• Blue Rabbitmajor channel / co-marketing partnerStrategic or Co-development PartnerInnovative payments partnership announced 2024 enabling veterinary practices to use Scratch Checkout for Blue Rabbit's online payment processing and integrated reporting suite — designed to streamline cash flow, reduce transaction costs, and improve operational efficiency for online vet pharmacy orders.
• Veterinary Hospitals Association (VHA)mid-tier / association channelChannel Partner/ Reseller/ DistributorSigned partnership agreement under which VHA, the leading Midwest association for veterinary practices, offers Scratchpay's client finance payment plans to its member clinics.
• MWI Animal Health (MWI)mid-tier / distributor channelChannel Partner/ Reseller/ DistributorPartnership with Premier Pet Care Plan and Scratchpay intended to 'ease the financial burden of both routine and emergency pet care' for veterinary practices served by MWI's distribution network.
• Snout Schoolminor / co-marketingGTM or Marketing PartnerCo-marketing partnership providing veterinary clinics with actionable, goal-focused marketing plans in combination with Scratchpay's financing solution.
• Stripecore infrastructure partnerTechnology or IntegrationUsed as the disbursement rail for Manufacturer Offer Program reimbursements; enrolled clinics must agree to the Stripe Connected Account Agreement and Stripe Terms of Service to receive Reimbursements.
• Leading Practice Information Management Systems (PIMS) vendorscore / flagship technology integrationTechnology or IntegrationScratch Checkout integrates directly into leading PIMS software so payments automatically reconcile with clinic records; eliminates third-party PIMS integrations for practices.

Scale indicators11 records

Recent moves9 records

Expansion highlights6 records

Broad incumbents

• CareCredit (Synchrony Financial): Synchrony Financial's healthcare financing arm; the dominant U.S. patient financing product for veterinary, dental, and medical procedures. Directly comparable to Scratch Pay in vertical focus and underwriting logic, but operates at much greater scale under a major bank charter.
• Affirm: Public BNPL provider with installment plans at the point of sale across retail and select healthcare categories. Comparable to Scratch on closed-end installment underwriting, but operates at much larger scale and broader (non-vertical-specialized) merchant footprint.
• Klarna: Global BNPL pioneer; comparable to Scratch on pay-over-time installment model and is directly relevant given CEO John Keatley's prior CFO tenure there. Serves retail rather than healthcare but operates the same fundamental closed-end lending economics.
• Afterpay (Block): BNPL provider under Block (Square) offering pay-in-four and longer-term installment plans to consumers at merchant checkout. Comparable to Scratch on installment underwriting mechanics, though retail-focused rather than vertical-specialized in healthcare.
• GreenSky (Goldman Sachs): Originally a healthcare/home-improvement patient financing platform, now part of Goldman Sachs. Comparable to Scratch on bank-partnered installment lending for medical and home services, with similar bank-partnership regulatory model.

Direct peers

• Sunbit: Point-of-sale financing company focused on auto, healthcare, and veterinary service providers, offering near-prime BNPL plans. Comparable to Scratch on the merchant-side payments plus patient-side lending model and veterinary vertical emphasis.
• Wisetack: Patient financing platform for home services and healthcare providers offering installment loans at the point of sale. Comparable to Scratch as a healthcare-vertical BNPL/integrated payments challenger targeting practices with similar underwriting and merchant integration.
• PatientFi: Healthcare patient financing platform focused on elective medical, dental, and cosmetic procedures, offering pay-over-time plans embedded in practice workflows. Comparable to Scratch's human-healthcare expansion (dental, optometry, chiropractic) and integrated practice-side approach.
• LendingUSA: Point-of-sale patient financing platform for medical, dental, and veterinary practices, offering installment loans originated through a partner bank. Comparable to Scratch on the two-sided vertical healthcare model and WebBank-style bank partnership structure.

Emerging players

• Cherry (Paytient): Point-of-sale financing platform focused on medical, dental, and veterinary practices, with similar soft-pull eligibility and integration into practice management systems. Comparable to Scratch on vertical-specific underwriting and practice-side integration, though smaller in scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/ScratchFinancial
• LinkedInlinkedin.com/company/scratchpay
• Instagraminstagram.com/scratch_financial
• Xx.com/ScratchPay

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds8 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Scratch