California based online payments giant Paypal has agreed to acquire Canadian payment management company TIO Networks for $233 million. Paypal believes this acquisition will allow them to reach previously underserved parts of North America.
PayPal has agreed to buy bill payment management company TIO Networks for $233 million in cash. The deal will allow PayPal to gain access to a market of customers who pay their utility and cable bills at kiosks in locations like Rite Aid. This will help the company reach the “underserved” chunk of North Americans who are living paycheck-to-paycheck, some who even lack bank accounts. “There’s a chance to create a bridge for those users into the digital world,” Bill Ready, PayPal COO told TechCrunch. While they were unable to offer specifics on integration plans, the idea of bringing cash transactions to PayPal digital accounts is a concept that the company has been working on. The team has been developing PayPal Cash which makes it easier to convert your cash into online payments.