CA-based Flex, a payment platform for businesses to accept HSA/FSA cards has raised $3.2 million in seed funding round led by Y Combinator, SV Angel, Precursor Ventures, Liquid 2 Ventures, Heirloom Ventures, among others.
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With the money, Flex intends to accelerate product development, sales, and marketing while capitalizing on companies’ strong interest in capturing more of the potential annual HSA/FSA expenditure of $150 billion.
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“We were impressed by the strength and experience of the Flex team, whose deep fintech expertise and proven execution capabilities gave us great confidence in their ability to deliver on their ambitious vision to transform the landscape of health-related spending,” said Beth Turner, Managing Partner at SV Angel.
Charles Hudson, Managing Partner and Founder, Precursor Ventures, said, “Flex is closing an important and large gap in the payments ecosystem – one that will help brands and consumers leverage HSA and FSA dollars more efficiently.”
Auto Substantiation
If you are an ecommerce store selling HSA/FSA eligible items, you are required by the IRS to use an Inventory Information Approval System (IIAS). This system must auto-substantiate HSA/FSA transactions at the point of sale in order for consumers to use their HSA/FSA cards. Flex offers this system for our merchants.
Letter of Medical Necessity
If you are a wellness business (fitness, nutrition, sleep, etc), your product or service may not be explicitly eligible by the IRS. Consumers must receive a Letter of Medical Necessity from a physician deeming your product medically necessary before you can accept HSA/FSA funds. Flex is able to issue a Letter of Medical Necessity directly in the checkout flow, providing a seamless and compliant checkout experience for your users.
About Flex
Founded by Sam O’Keefe and Miguel Toledo in 2023, Flex offers a hosted checkout page to integrate HSA/FSA payments directly in your existing payments flow. Flex offers two paths to accept HSA/FSA cards at checkout. Auto Substantiation and Letter of Medical Necessity.
