PayPal suspends TIO Networks unit due to cyber security concerns

11/10/17 06:56 PM EST

PayPal Holdings Inc. (PYPL) has suspended its TIO Networks business due to cyber security concerns, the company said late Friday. PayPal said that it had discovered security vulnerabilities on the TIO platform and that the TIO data security program does not meet PayPal's standards. The PayPal platform is not affected, the company said. "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," the company said in a prepared statement. "We are working with the appropriate authorities to safeguard TIO customers." PayPal acquired TIO in July of 2017 for $174 million, according to FactSet. The Vancouver, Canada-based TIO operates a bill payment platform. PayPal stock is up a fraction in late trading to $74.05, and has gained 87% this year, with the S&P 500 index rising 15%

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11-10-17 1856ET

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