PayPal moves into bill payments with TIO acquisition

Andrew Cummings
February 17, 2017

When TIO's employees join PayPal, PayPal will increase its Canadian presence, with the addition of TIO's Vancouver team to the existing PayPal Canada team, which is based in Toronto and located at the MaRS Discovery District. It operates 900 operated self-service kiosks, 65,000 retail walk-in locations, and mobile and web solutions.

TIO now serves 14 million consumer bill pay accounts, as well as offering convenient solutions for expedited bill payment services towards financially underserved consumers.

"Together, PayPal and TIO envision a future where paying a bill is as simple as PayPal already makes it to send money to friends or buy something online". The said purchase price represents a premium of 25.2 percent to TIO's 90-trading day volume-weighted average price as of February 13, 2017, as well as 22.6 percent towards the 20-trading day volume-weighted average price as of January 9, 2017, where the trading day has immediately preceded the day that TIO entered into exclusive negotiations with PayPal.

Shahbazi added that TIO's objectives, in serving clients outside of the channels of financial institutions, align nicely with PayPal's mission for "financial inclusion". PayPal offered $2.56 per share, with the deal expected to be finalised by the end of 2017.

The deal still requires the approval of two-thirds of votes cast at a special meeting of TIO shareholders.

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"Worldwide, more than 2 billion people do not have affordable access to basic financial services, making it hard and expensive for consumers to carry out basic financial tasks, including bill payment", says Dan Schulman, PayPal CEO.

PayPal CEO Dan Schulman said Tio would be a key cog in helping the world's most famous fintech access billions of the world's "unbanked", people who do not use traditional financial services.

TIO Networks, founded in 1997, provides an online platform for consumers to pay bills.

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