PayPal suspends TIO Networks’ operations due to security concerns
PayPal has suspended the operations of TIO Networks, a bill-payment company it purchased earlier this year, following the discovery of security vulnerabilities that require investigation.
PayPal has hired a third-party cybersecurity firm to look into vulnerabilities on the TIO platform and issues with TIO’s data security program, PayPal said in a Friday press release.
TIO Networks is not integrated into PayPal’s platform, the San Jose, Calif.-based payments giant noted in the release. PayPal paid $233 million in February to acquire Vancouver, Canada-based TIO, touting the momentum of its digital bill-payment platform and large network of physical locations targeting unbanked and underbanked consumers.
TIO’s operations currently don’t meet PayPal’s information security standards, and during the investigation PayPal will also examine TIO’s practices and representations prior to acquiring the firm, PayPal said in the release.
TIO, which reaches more than 10,000 billers with a heavy concentration of telecom, wireless, cable and utility services, handled more than $7 billion consumer bill payments in fiscal 2016, PayPal said when it bought the company. Consumers access TIO through 900 self-service kiosks, 65,000 retail locations, along with mobile and online sites.