Payment processor PayPal Holdings has acquired Vancouver-based TIO Networks for $238 million in cash. PayPal announced the completion of its previously announced acquisition which saw the internet payments giant paying $3.35 CDN or $2.64 USD per share.
Founded in 1997, TIO Networks operates a multi-channel network in North America which provides bill payment services and technologies for online and offline customers.
Throughout its 65,000 retail locations, TIO processed $7 billion in consumer bill payments last year and currently serves 16 million consumers with more than 10,000 supported billers.
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TIO’s founder Hamed Shahbazi will maintain his position as the current CEO and the firm will operate as a separate service within PayPal Group.
The acquisition promises to reap rewards for PayPal by expanding its offerings into bill pay, which can be an effective customer loyalty service and a new way to source more customers in non-banked markets.
While PayPal didn’t clarify specifics on integration plans, the company said in the official statement: “Through this acquisition, PayPal will expand its global scale of operations, complement its product portfolio, and accelerate its entry into the bill pay market, enabling millions of customers to improve their financial health through access to TIO’s valuable services. The acquisition enables PayPal and TIO to realize the companies’ shared vision of reimagining money and democratizing financial services so that everyone has affordable ways to manage and move their money.”
Dan Schulman, President and CEO of PayPal, also noted: “In the last two years, PayPal has made significant strides towards realizing our mission to democratize financial services and provide secure, convenient and affordable ways to move and manage money to those who are underserved by the financial system. Expanding into multi-channel bill payments through the acquisition of TIO furthers this mission and will meaningfully advance our ability to offer digital financial services to tens of millions of underserved customers.”