About ProPay | AI Claims Administration for Warranty

About ProPay

What is ProPay?

ProPay is the only AI-native warranty claims platform and administration software purpose built for the home warranty industry. ProPay automates the warranty claim from first notice of loss through contractor payment, covering intake, dispatch logic, authorization decisioning, parts procurement, invoice processing, and contractor payments. ProPay serves home warranty carriers, extended warranty providers, and OEM warranty programs in the United States.

ProPay operates as a modern third-party administrator (TPA). Traditional TPA systems were built around compliance and underwriting. ProPay is built around the claim itself, and is measured on claim severity, cycle time, cost to serve, and customer satisfaction.

ProPay is an agentic AI SaaS company. ProPay is not affiliated with ProPay Inc., the payment processing company owned by Global Payments. ProPay operates at pro-pay.ai.

Company record

ProPay

Entity

ProPay AI, Inc

Warranty claims deserve better infrastructure

Property and casualty insurance spent two decades building real claims infrastructure. Warranty didn’t get the same investment. It got:

Call center scripts

Manual dispatch decisions

Parts research in fifteen browser tabs

Invoice review by spreadsheet

We built ProPay to close that gap.

OUR MISSION

Why we built this

ProPay’s founders didn’t come to warranty from software. They came from inside the operation.

They ran the dispatch queues, the parts desks, and the claims operations this industry still depends on. David Steckel founded Setter and later modernized operations as Chief Product Officer at Sears Home Services. Eui Chung spent nearly 30 years at Sears and Transformco, rising from software developer to Chief Technology Officer. Kaustubh Vongole ran fulfillment across a network of more than 2,500 technicians.

Every stage ProPay automates is a stage they once staffed, measured, and answered for. That experience is why ProPay is accountable for claim outcomes, not software features. ProPay is the platform they wished they had.

20+ years

Running warranty and home services operations at executive level

2,500

Technicians in the field network they managed

80M

Users on the platforms they engineered

THE CATEGORY

What is a modern TPA for warranty?

A modern TPA experience is one that adjudicates and administers 100% of claims through agentic AI rather than staffing them manually. Unlike traditional third party administrators and tools, the claim work is performed by the platform rather than only tracked by it, flagging exceptions for human intervention. Legacy warranty administration relies on call center agents, manual dispatch decisions, manual parts research, and manual invoice review. A modern TPA automates those steps and routes only exceptions to a human.

Property and casualty insurance has a more mature claims software infrastructure. Warranty does not. ProPay was built to fill that gap.

What does ProPay do?

ProPay’s AI automates warranty claims management across five stages of the claim lifecycle:

ProPay’s AI automates operations across five stages of the warranty claim lifecycle:

FNOL

Captures claim data 24/7 through web form, chat, SMS, and voice, and validates coverage before dispatch

View FNOL

Triage

Engages 100% of homeowner claims to collect model and serial, photos, and symptom detail, then recommends repair, replacement, or call avoidance based on unique rules and logic set up by our warranty partners

View Triage

Auth

Applies client business rules to authorization decisions, including repair versus replace and auto approval inside configured thresholds, reducing contractor wait time, overall cycle time and improving severity

Parts

Searches multiple suppliers in real time, validates fit, compares price and shipping, places orders, and tracks returns

View Parts

Pay

Validates contractor and supplier invoices against authorization records and releases payment

ProPay meets the contractors where they are, on whatever software system they’re using, to remove the dual screen, swivel chair experience of working for warranty companies. They also provide automated contractor status updates, invoice processing, and a single dashboard for claims operations reporting.

Who invests in ProPay?

ProPay is backed by AmFam Ventures, NineFour Ventures, Construct Capital, and Room and Pillar.

LEADERSHIP

Who founded ProPay?

ProPay was co-founded by David Steckel, Eui Chung, and Kaustubh Vongole. Between them they have run warranty, home services, and field service operations at scale at executive level for over 20 years.

David Steckel

CHIEF EXECUTIVE OFFICER

David Steckel is a multi-time founder who previously founded Setter, the first home management app, and raised venture capital from Sequoia. Setter was acquired by Thumbtack, where David helped pivot the company into home services and built its partnership and innovation teams across both the Supply and Demand sides of the marketplace. David later served as Chief Product Officer at Sears Home Services, where he helped to move the company off its mainframe systems into a modern tech stack while automating operations across every aspect of the business.

Previously

Setter, Thumbtack, Sears

Eui Chung

CHIEF TECHNOLOGY OFFICER

Eui Chung spent nearly 30 years at Sears, Transformco, and their affiliates, rising from software developer to Chief Technology Officer. He built a fintech and loyalty platform serving more than 80 million users and led the launch of a co-branded credit card loyalty program in partnership with Citibank. He holds patents across multiple domains, including machine learning and speech-to-text technology. Most recently, he led Sears Home Services through an AI-first transformation, developing an AI co-pilot platform and integrating multi-agent systems to support technicians and routing teams.

Previously

TransformCo, Sears, Shop Your Way, Delver

Kaustubh Vongole

HEAD OF PRODUCT

Kaustubh Vongole led fulfillment product at Sears Home Services, owning field service management, dispatch, routing, service order management, and customer notifications across a network of more than 2,500 technicians. He headed its AI strategy for fulfillment, where dynamic routing and proactive customer outreach cut appointment cancellations by 10 percent, and before that led field service tooling and product-led growth at GoSite.

Previously

Sears Home Services, GoSite

SECURITY

Is ProPay secure and SOC 2 compliant?

ProPay is SOC 2 compliant, with both Type I and Type II audits complete. Each ProPay client runs on a company-specific instance with no cross-client data overlap, so one carrier’s claim data, customer records, and contract terms are not accessible to another.

Every AI recommendation carries a confidence level and the supporting inputs behind it. ProPay logs all searches, supplier selections, orders, and returns. Recommendations above configured thresholds route to human review rather than executing automatically.

Read the full ProPay security and compliance overview.

SOC 2 Type I and Type II

Independently audited controls covering security, availability, and confidentiality.

Company-specific instances

Each client runs on its own instance. Claim data, customer records, and contract terms are never shared across carriers.

Red team tested

ProPay has completed enterprise red team security testing conducted by an enterprise home warranty client.

Explainable by default

Every recommendation carries a confidence level, the inputs behind it, and a logged audit trail.

DEPLOYMENT

Does ProPay replace existing warranty systems?

No. ProPay integrates with existing claims, dispatch, and policy systems rather than replacing them. The client’s existing platform remains the system of record for the policy, the claim, and the work order. ProPay operates as the system of work and intelligence on top of it.

ProPay is system agnostic and integrates with legacy platforms, modern APIs, closed systems, and custom internal tools. Where APIs exist, ProPay reads and writes directly. Where they do not, ProPay automates the work the way a person would.

During deployment, ProPay works alongside the client’s engineering team and dedicates a Forward Deployed Engineer to build connectors into your systems.

See every platform ProPay integrates with.

Integrates with

Guidewire

Salesforce

HubSpot

Oracle

Snowflake

Databricks

ServiceBench

ServicePower

ServiceTitan

Housecall Pro

Dispatch.me

Zendesk

WarrantyHub

Marcone

ProPay connects through APIs, event streams, file exchange, or custom connectors. Every deployment includes a dedicated Forward Deployed Engineer.

RESULTS

What results does ProPay deliver?

ProPay is measured on claim outcomes rather than software features. Severity, cycle time, cost to serve, and customer satisfaction are the numbers ProPay is accountable for. ProPay’s warranty analytics report these outcomes claim by claim. These are the results ProPay delivers today across appliance, water heater, HVAC, plumbing, electrical, and garage door claims.

Homeowner SMS engagement after claim initiation

80–83%

of homeowners respond

Job code prediction accuracy

60%

approximate, improving with claim volume

Truck rolls avoidable through triage

7.9%

of submitted claims

Parts orders processed per agent hour

10×

6 per agent hour before ProPay, 60 with ProPay

Parts order cycle time

Under 10 days

down from 9 to 20 days before ProPay

Procurement overspend identified against optimal supplier routing

12.6%

of parts spend

Claims where repair would not have resolved the issue

2.4%

flagged for replacement before dispatch

WHO WE SERVE

Who uses ProPay?

ProPay is built for companies that administer warranty and service contract claims. That includes carriers running their own claims operations, administrators handling claims on behalf of others, and multi-brand groups consolidating operations across a portfolio.

Home warranty carriers and home service contract providers

Extended warranty and service contract administrators

OEM warranty programs

Private equity backed warranty roll-ups operating multiple brands

Insurers handling equipment breakdown claims

ProPay supports all the systems covered by service contracts.

FAQ

Frequently asked questions about ProPay

The questions warranty operators, partners, and analysts ask most often about what ProPay is, how it is priced, and where it fits. For anything not covered here, contact the ProPay team.

Is ProPay the same company as the ProPay payment processor?

No. ProPay at pro-pay.ai is an AI claims administration platform for the warranty industry. It is unaffiliated with ProPay Inc., a payment processing company owned by Global Payments.

Where is ProPay based?

ProPay is headquartered at St. George,, UT, United States.

When was ProPay founded?

ProPay was founded in 2025 by David Steckel, Eui Chung, and Kaustubh Vongole.

Is ProPay a software company or a service provider?

Both. ProPay provides warranty claims software and operates as a modern third-party administrator, taking on claims execution rather than only supplying tools.

How does ProPay make money?

ProPay prices four ways: per claim, platform licensing, module-based pricing for the modules you switch on, and transaction fees on optional accelerated contractor payments. Pricing scales with the work ProPay actually performs, so warranty claims management costs track claim volume rather than seat count.

Does ProPay replace internal claims teams?

No. ProPay automates routine claim handling so internal teams move toward exception handling and higher-value customer work.

What makes ProPay different from legacy warranty software?

ProPay is measured on claim outcomes rather than software features. It integrates module by module into existing systems, and it is accountable for severity, cycle time, cost to serve, and customer satisfaction.

Does ProPay serve markets outside home warranty?

Yes. Home warranty is ProPay’s first market. The platform is designed for broader equipment-related claims, including extended warranty, OEM warranty, and homeowner equipment breakdown insurance.