JPMorgan Chase & Co. entered an agreement to buy InstaMed, a technology firm specializing in healthcare payments.

The bank is reportedly paying more than $500 million for the company, however a spokesman said via email that he was not authorized to comment on the amount.

The InstaMed platform is used to help reduce paperwork, reduce the cost of collection and improve the consumer finance experience. JPMorgan Chase said the acquisition will expand its suite of payment services aimed at providers, payers and healthcare consumers.

"We’ve made significant investment 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 wholesale payments at JPMorgan Chase.

Officials noted that the $3 trillion U.S. healthcare payments system is plagued with inefficiency, transaction friction and related issues that impact claims processing, payment collection and reconciliation.