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JPMorgan Chase (JPM - Get Report) announced Friday it would acquire InstaMed, which specializes in healthcare payments technology.

Terms of the acquisition weren't disclosed. But a CNBC report, citing people familiar with the matter, said JPMorgan would pay more than $500 million.

The acquisition is part of a larger effort by JPMorgan to build its healthcare payments services aimed toward healthcare consumers and providers. 

"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. With InstaMed, we combine the strength and scale of JPMorgan Chase's payments capabilities with a leading healthcare payments solution for consumers, providers and payers," said Takis Georgakopoulos, global head of wholesale payments, JPMorgan Chase. "The InstaMed team is passionate about delivering an excellent client experience with a focus on innovation, keeping data safe and secure, and simplifying the end-to-end healthcare payments process - a natural fit with our Wholesale Payments franchise."

InstaMed processed more than $94 billion of payments last year using its centralized platform, which eases difficulties in healthcare payments, namely paperwork and the cost for insurance to collect payments. U.S. healthcare spending is more than $3 trillion annually, and InstaMed has targeted the currently outdated payment infrastructure as one that it can provide value and efficiency for. Security also is a priority for the company. 

"We couldn't be more excited to join the JPMorgan Chase family - combining one of the world's preeminent financial institutions with the premier technology and talent in healthcare payments," said Bill Marvin, co-founder and CEO of InstaMed. "Together, we will be able to invest in and expand the InstaMed Network, accelerate our consumer reach, and deepen our commitment to innovation."

JPMorgan shares were down 0.51% to $110.77 in trading Friday.

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