Soon it may not be necessary to have a bank account to make payments with PayPal.
PayPal and TIO Networks announced today that PayPal would be acquiring TIO for $233 million. With this acquisition, PayPal accesses TIO’s 14 million customer accounts, and a network of agents, including Global Express, ACE Cash Express, and Moneygram.
TIO is a bill-payment processing service for those who don’t necessarily use bank accounts for their financial transactions. With its API, you can pay your utility and telecom bills from your phone, computer, or a self-service kiosk without having to go through a bank.
Dan Schulman, CEO of PayPal, said:
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.
Could PayPal be making a move into the self-service world?
The company already has a cash-card based system that lets you add cash directly into your account. Partnering with TIO would be the next step to move your cash directly from your hand to your bill collector’s.
The acquisition is expected to close some time later this year.