Payments giant PayPal has agreed to take over Vancouver-based bill payment processor TIO Networks for $233m.
TIO provides services to telecom, wireless, cable and utility bill issuers in North America. The company processed over $7bn in consumer bill payments in fiscal 2016 for its 14 million customers throughout its 65,000 retail locations.
The acquisition is expected to give Paypal’s customers more convenient and affordable ways to pay their bills. It will also accelerate Paypal's entry into bill payments with 14 million consumer bill pay accounts.
PayPal also intends to offer TIO’s service to its customers within its online and mobile experiences.
Following the completion of the deal, TIO will operate as a service within PayPal.
Subject to TIO securityholder approvals, including the receipt of approvals relating to the company’s money transmitter licenses, the transaction is expected to close in the second half of 2017.
PayPal president and CEO Dan Schulman said: “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. 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.”
TIO chairman and CEO Hamed Shahbazi said: “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. 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.”