For those of you that are not too familiar with TIO; TIO is the largest bill payment processor for telecommunications, wireless phone, cable and utility payments. In July, they were acquired by PayPal for $174M, only to span out to now where PayPal recently suspended the service after what seems to be a security vulnerability that has been discovered. Definitely a smart move from PayPal considering that safety and consumer protection should be one of the highest responsibilities for them.
PayPal Suspends TIO Bill Pay Service Summary:
- Security vulnerability forces PayPal to suspend it’s TIO Bill Payment Service
- This increases the prospects of Plastiq moving up
“While we apologize for any inconvenience this suspension of services may cause, the security of TIO’s systems and the protection of TIO’s customers are our highest priorities”
TIO vs. Plastiq:
Both of these Bill Payment Services are offered under PayPal, however, it doesn’t mean that we can’t compare them! Below will be widely a comparison between the two services and hopefully we’ll establish which service we find more exceptional.
- TIO fees are much higher than Plastiq’s
- TIO doesn’t always allow payments with credit card
- TIO has the ability to pay credit card bills via debit card (Plastiq doesn’t allow this)
Final Analysis:
PayPal recently discovered a security vulnerability within TIO’s Bill Payment Service leading to the service being suspended until the vulnerability meets a solution standard. At a standpoint, TIO has much higher fees than Plastiq and doesn’t allow payments with a credit card. This incident could lead to further growth the PayPal’s Plastiq service. Don’t forget to check out our full list of Credit Card Bonuses if you’re not interested at the moment.
