PayPal will acquire Vancouver-based TIO Networks, a bill payment processing and receivables management company, in a $304 CAD million agreement.
The acquisition is expected to help PayPal effectively enter the bill payments space. TIO allows billing companies — such as telecom, wireless, and cable companies — to accept payments outside of traditional bank channels. It operates 900 operated self-service kiosks, 65,000 retail walk-in locations, and mobile and web solutions.
To date, TIO has processed more than $7 billion USD in consumer bill payments in fiscal 2016, and serves 14 million consumer bill pay accounts. TIO currently has over 10,000 supported billers.
“By acquiring TIO and integrating bill payment into our global payments platform, PayPal adds another key service in our efforts to become a part of a consumer’s everyday financial life,” said Dan Schulman, president and CEO of PayPal. “Worldwide, more than 2 billion people do not have affordable access to basic financial services, making it difficult and expensive for consumers to carry out basic financial tasks, including bill payment.
TIO’s digital platform, and physical network of agent locations make paying bills simpler, faster, and more affordable. We are excited by the opportunity to extend this valuable service to our existing customers and welcome new billers and customers to PayPal.”
The acquisition is expected to close in the second half of 2017, and will operate as a service within PayPal.
“We founded TIO to make speed and access part of the bill payment experience for the underserved, and we believe that we have created affordable products to serve the needs of all customers,” said Hamed Shahbazi, chairman and CEO of TIO. “Our mission fits perfectly with PayPal’s vision to democratize money. As part of the PayPal team, we believe we will accelerate our growth through expanded distribution and continue increasing access to more billers and services.”
This story was originally published by BetaKit.