Marketwire 18-Jul-2017 9:20 AM
LOS ANGELES, CA and CHICAGO, IL -- (Marketwired) -- 07/18/17 -- Core Innovation Capital (Core) and the Center for Financial Services Innovation (CFSI) are proud to announce that their portfolio company TIO Networks was acquired by PayPal (NASDAQ: PYPL) today. CFSI, the nation's authority on financial health, made an early investment in TIO Networks in 2005. Core, a venture capital firm investing in leading financial technology companies, invested in TIO in 2013 as part of their mandate to create value for everyday and underserved Americans.
TIO is a cloud-based multi-channel bill payment processor that has processed over $7 billion in payments in 2016 for its 14 million customers. The company delivers convenient access to secure bill pay via kiosk, walk-in, mobile and web solutions.
"Our exceptional financial return is further enhanced by the fact that TIO is one of the most impactful fintechs in the industry, now becoming part of PayPal," said Arjan Schtte, founder and managing partner of Core.
"PayPal's acquisition of TIO represents one of CFSI's greatest impacts to date," said Jennifer Tescher, founder and CEO of CFSI. "In TIO, we made an early investment that helped a strong innovator become a financial health champion, and the company has built an incredible business around a real consumer pain point, shaped it, and demonstrated that it can be done profitably. Under the larger umbrella of PayPal, TIO should scale even further to benefit more Americans."
Seventy-nine percent of TIO's customers are low-to-moderate income, of which a majority pays their bills by giving cash to a teller at a convenience or other retail location. One of the reasons both CFSI and Core invested is that these bills, when expedited, can be extremely expensive. When Core invested in 2013, TIO saved its customers $192 per year on walk-in bill pay charges, relative to the most common alternatives in the market. This translates to an aggregate savings of $290 million in that year alone. TIO is one of the most impactful companies in Core's portfolio in terms of number of customers served and ratio of underserved customers.
PayPal's CEO, Dan Schulman, has for years been an outspoken advocate for business doing more to promote financial inclusion and democratizing financial services, and counts the online remittances company, Xoom, as another important asset towards this objective. The TIO sale further underscores PayPal's commitment to be an industry leader in financial health.
About CoreCore Innovation Capital is a fintech venture capital firm investing in companies committed to empowering small businesses and everyday Americans. Our portfolio companies deliver more efficient, well-designed solutions that save people time and money, create upward mobility, and scale broadly -- driving both profit margins and consumer value. To learn more, visit www.corevc.com and find us on Twitter at @CoreEMC.
About CFSI The Center for Financial Services Innovation (CFSI) is the nation's authority on consumer financial health. CFSI leads a network of financial services innovators committed to building a more robust financial services marketplace with higher quality products and services, specifically for those who are struggling. Through its Compass Principles and a lineup of proprietary research, insights, and events, CFSI informs, advises, and connects members of its network to seed the innovation that will transform the financial services landscape. For more on CFSI, go to www.cfsinnovation.org and follow us on Twitter at @CFSInnovation.
Media Contacts: Shannon Austin CFSIsaustin@cfsinnovation.org 703-338-8813Monique Villa Core Innovation Capitalmonique@corevc.com 323-951-1505 x108Michael Azzano Cosmo PR for CFSImichael@cosmo-pr.com 415-596-1978