Unlocking Billions in Health Spending: Why We Invested in Burst

We are excited to announce our investment in Burst, a healthcare payments platform that is transforming how retailers and wellness brands capture billions in untapped HSA/FSA spending. HSA/FSA accounts are pre-tax healthcare savings accounts that allow people to pay for eligible medical expenses. Burst has developed a post-purchase integration solution that makes it effortless for shoppers to use these healthcare dollars on eligible purchases while helping merchants drive higher conversion, retention, and customer lifetime value. By eliminating friction in the reimbursement process, Burst is positioning itself as essential infrastructure in the healthcare payments ecosystem. 

Billions Left on the Table

There are now over $150 billion in assets held across more than 40 million HSA accounts in the U.S. alone; a massive, growing pool of pre-tax healthcare dollars that consumers are already motivated to spend. Yet despite this enormous reservoir, account holders collectively forfeit at least $4.5 billion in HSA/FSA funds annually, with nearly half losing an average of $422 each due to complexity and missed deadlines. For consumers, navigating HSA/FSA reimbursements has been historically fragmented and purposefully difficult. For retailers selling eligible products like over-the-counter medicine, supplements, fitness equipment, and wellness items, the traditional approach to accepting HSA/FSA payments requires complicated checkout modifications that disrupt the customer experience.

This problem creates a lose-lose scenario. Consumers abandon their pre-tax health benefits because the reimbursement process is too difficult, while retailers miss out on capturing health spending from their most valuable customer segment. HSA/FSA cardholders are already among retailers' most loyal customers, returning more often and spending significantly more when they do. The question has always been how to activate this spending without disrupting existing payment systems or customer behavior.

A Post-Purchase Solution Built for Seamless Integration

At the heart of Burst's value proposition is its post-purchase approach. Unlike traditional HSA/FSA payment solutions that require new payment methods or checkout modifications, Burst works entirely after the purchase is complete. This is a critical advantage. Retailers keep their existing payment stack, checkout flows, and tooling unchanged. There is no need to modify point-of-sale systems, train cashiers on new processes, or disrupt the customer experience at the moment of transaction. Shoppers pay as they normally would and after purchase, Burst identifies HSA/FSA-eligible items, notifies customers of their savings opportunity, and files reimbursement claims automatically with their plan administrator. This seamless post-purchase model removes all friction from both the merchant and consumer experience.

This approach delivers measurable results. Burst has already demonstrated strong traction with wellness brands and retail partners, driving up to 30 percent higher customer basket size and up to 42 percent increase in retention rates. The platform integrates through a simple Shopify app or API and works across every sales channel, including e-commerce, in-store point-of-sale systems, telehealth platforms, and subscription services.

An Exceptional Team with Deep Expertise

Burst is led by co-founder and CEO Anthony Rangel, who brings extensive experience in healthcare payments and fintech. He is joined by co-founder and Chief Product Officer Shubhi Jain, whose deep understanding of the ecosystem has been instrumental in building a platform that truly solves the fragmentation problem. Together, this team combines technical expertise with domain knowledge, positioning Burst to execute on its ambitious vision of becoming the center of health and wellness spending.

Looking Ahead

The shift toward making healthcare more accessible and user-friendly is accelerating. Consumers increasingly expect seamless digital experiences in every aspect of their financial lives, including healthcare spending. Retailers recognize that removing friction from the purchasing process directly impacts conversion and customer lifetime value. Burst sits at the intersection of these trends, providing infrastructure that benefits all participants in the healthcare payments ecosystem.

We are proud to support Anthony, Shubhi, and the entire Burst team as they eliminate the barriers that have kept billions in healthcare dollars locked away. By making HSA/FSA spending effortless, Burst is not only creating value for retailers and consumers but also contributing to a healthier society where people can more easily invest in their wellness.