TIO Networks

TIO Networks, founded in 1997 by Hamed Shahbazi, began as a kiosk solution provider named Info Touch Technologies and evolved into a significant multi-channel bill payment processor in North America. Shahbazi, a University of British Columbia graduate, was inspired to create a solution for individuals who lacked internet access, initially developing software for cyber cafes before pivoting to self-service kiosks for financial transactions. This addressed a critical need for accessible bill payment options, particularly for underbanked consumers.

The company's business model focused on providing a cloud-based platform that allowed users to pay bills for major telecom, wireless, cable, and utility issuers. TIO Networks established a wide-reaching network that included approximately 900 self-service kiosks, web and mobile solutions, and a vast network of around 65,000 retail walk-in locations. This multi-channel approach provided speed and convenience, enabling real-time payment posting and helping customers avoid late fees and service interruptions. Revenue was generated through processing these transactions for its network of over 10,000 billers. The company primarily served individuals who lacked traditional banking services, such as the unbanked, older individuals, or new immigrants.

A key milestone in the company's history was its acquisition by PayPal in July 2017 for approximately $238 million USD (C$302 million). At the time of the acquisition, TIO was processing over $7 billion USD in bill payments annually and serving roughly 16 million consumer bill pay accounts. The acquisition was part of PayPal's strategy to expand into the bill payment market and reach underserved consumers. Following the acquisition, Shahbazi continued to lead the TIO service within PayPal. However, in November 2017, PayPal suspended TIO's operations after discovering security vulnerabilities, which were later confirmed to be a data breach that potentially compromised the information of approximately 1.6 million customers.

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