Tio Networks sees transactional revenue growth
By Robin Arnfield, News Editor
Tio Networks, the Vancouver, BC-based bill payment processor, says transactions over its network grew by 22% year-on-year in its second quarter to January 31, 2010.
Tio provides cash-based utility bill payment services at 21,000 merchant locations across the US, including around 1,000 self-service kiosks. It also has a small number of bill payment locations in Canada, which chairman and CEO Hamed Shahbazi says is set to grow.
Compared to the last quarter of fiscal 2009, transactions in Q1 2010 grew by 11%. During Q1 2010, Tio saw an increase in US dollar-denominated transaction revenue, with January revenues of US$1.927 million being up 29% on January 2009. Transactions taking place in January 2010 rose by 33% year-on-year to 771,210.
February 2010 transactions surpassed the 1 million mark and were worth US$2.4 million, Tio says.
Shahbazi says that Tio now offers multi-channel bill payment services. “We offer retailers an application programming interface (API) that enables their point-of-sales terminals to process bill payments via our network,” he says. “We also have self-service bill payments kiosks, and we have just launched a mobile bill payment platform for smartphones.”
The smartphone service takes Tio away from its previous customer base of unbanked or cash-preferred consumers. “Research shows that the majority of Americans who are late in paying their bills and need to set up a one-time payment prefer to use payment cards,” Shahbazi says. “Our smartphone service enables them to download a payment app to their iPhone or Android device, for example, and then use their card to pay their bill.”
In February 2010, Tio signed an agreement with First Data to integrate its bill payment processing services with First Data’s Money Network electronic payroll distribution service.