PayPal is expanding its offering and reaching more users with the acquisition of bill payment company TIO Networks for roughly $233m.
The Vancouver-based firm listed on the Toronto Stock Exchange during the dotcom bubble and PayPal will pay $2.56 per share.
TIO serves more than 14 million customer bill payment accounts processing telecom, wireless, cable and utility bill payments for more than 10,000 supported billers.
Aiming to increase financial inclusion TIO operates a network of 900 self-service kiosks, 65,000 retail walk-in locations, as well as mobile and web solutions.
It processed more than $7bn in bill payments last year.
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 will continue to operate as a service within PayPal with the payments giant planning to offer TIO’s service to customers online and on mobile devices.
TIO’s 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.
“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.”
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