There has sure been a surge in digital payment companies attempting to get folks who don’t have access to either the facilities or the know how to make payments, on-board. On the heels of Uber rival Grab’s acquisition of Kudo, digital payments major PayPal has acquired bill payment management company TIO Networks for $233 million in cash.
Through this deal, PayPal’s userbase could grow to include folks who don’t directly conduct online transactions — for reasons that could vary. The number of such customers is surprising and TIO network actually taps into a huge market that consists of both, people who live from one paycheck to the other and also those, who simply lack access to financial amenities — including credit/debit card and bank accounts.
TIO Networks enables this particular section of the society through its kiosks that are scattered across different locations in North America. Folks can walk up to these Kiosks, pay in cash upfront and use the amount to do stuff like paying utility bills and so on. The company has operations spread across 65,000+ locations the world over and processed over $7 billion for over $14 million of its customers.
PayPal was counseled by Sidley Austin LLP in this particular acquisition. And the deal team was led by Gary Gerstman, M&A Partner in the firm’s Chicago office.
Meanwhile, PayPal is offering the company $233 million at a roughly $2.56 per share price. The deal is expected to close this very year, though no word could be made available about how — and whether — PayPal plans to integrate TIO network’s business into its own massive operations.