Everyday People Financial Corp. (EPF) and XTM Inc. have announced a Management Services and Program Management Agreement (MSA), effective October 22, 2025, under which EPF, through the jointly formed subsidiary Everyday People Payments Inc., will assume full operational management, compliance oversight, and technology administration for XTM’s Canadian network branded card and digital wallet programs.
The MSA is set for an initial term of five years from its effective date, with automatic renewals for successive five-year periods unless terminated per the agreement’s terms. This collaboration integrates the payment technologies of both companies onto EPF’s Digital Commerce Bank (DC Bank) issuing and processing platform, aiming to establish a comprehensive Canadian fintech ecosystem for earned wage access, corporate disbursement, and digital wallet solutions.
Gordon J. Reykdal, Executive Chairman of Everyday People Financial Corp., stated, “This partnership accelerates our strategy to deliver a unified, scalable, and compliant payments infrastructure across North America. By combining XTM’s client base and technology with EPF’s regulatory, operational, and banking framework, we are unlocking high margin recurring revenues and long-term value for both shareholder groups.”
Marilyn Schaffer, Chief Executive Officer of XTM Inc., commented on the agreement, saying, “Partnering with EPF ensures that our programs operate on some of the most compliant infrastructure operators in Canada and that their staff are delighted by new features including lending. This partnership enables XTM to focus on cross-border expansion of gig-payments and earned wage access across various new verticals. This transaction is immediately accretive to XTM’s financial performance and aligns with its focus on debt reduction, sustainable growth and profitability.”
Under the terms of the MSA, the jointly formed subsidiary Everyday Payments will be owned 90% by XTM and 10% by EPF. EPF has the potential to earn additional equity over time, up to a maximum of 49.9%, based on significant net revenue milestones, and holds a right of first refusal to purchase XTM’s shares of Everyday Payments at a mutually acceptable date in the future. EPF will assume full management and cost responsibility for all Canadian network branded card and wallet programs operating under the Everyday Payments brand. This arrangement will eliminate XTM’s historical operating costs associated with technology support, compliance, reconciliation, and program management, replacing them with EPF’s existing infrastructure and personnel. EPF anticipates managing these programs with fewer than six incremental team members, utilizing its integrated systems to achieve substantial economies of scale. All programs will operate under EPF’s DC Bank Visa platform, ensuring regulatory compliance and daily settlement through trust accounts.
Net Revenue sharing is defined as revenue after deducting direct network, banking, and processor costs. XTM’s net revenues in 2024 were reported at $9.1 million. The collaboration is projected to generate annualized revenues consistent with historical results within twelve months of full transition, accompanied by a significant increase in bottom-line profit share for XTM attributed to EPF’s cost absorption and consolidated operations. The MSA is structured as a capital-light, profit-sharing model, requiring minimal new headcount and avoiding shareholder dilution.
Tyler Hatch, EPF Co-CEO of EP Financial Services, added, “With EPF managing all operational, compliance, and technology layers, XTM immediately eliminates significant ongoing costs while maintaining participation in future revenues. The efficiency of this integration, executed with fewer than six new hires, translates directly to higher EBITDA and margin expansion for both companies.”
The strategic rationale for the partnership encompasses several key areas:
* **Cost Efficiency:** XTM will remove the burden of legacy operational costs, leading to immediate improvements in its cash flow and profitability.
* **Regulatory Compliance:** EPF will serve as the Payment Service Provider of Record, ensuring full alignment with Bank of Canada oversight.
* **Scalability:** Unified processing under EPF’s infrastructure is expected to enable faster client onboarding, real-time settlement, and expansion into new verticals such as hospitality, gig economy, and franchise payroll.
* **Revenue Synergy:** Shared monetization across interchange, SaaS, and lending programs is anticipated to enhance predictability and recurring income for both companies.
* **Technology Continuity:** XTM’s proprietary wallet and app technology will continue to operate under the Everyday Payments brand, with EPF providing ongoing management, compliance, and integration.
Everyday People Financial Corp., established in 1988, is a technology-driven financial services company operating in the United Kingdom and Canada. It focuses on Revenue Cycle Management and Financial Services, providing digital tools and credit access programs. XTM Inc. is a fintech company specializing in real-time payment and earned wage access solutions, serving the restaurant, hospitality, and gig-economy sectors across North America.
