Everyday People Financial Corp, are pleased to announce that the parties have entered into a Management Services and Program Management Agreement (“MSA”) dated October 22, 2025, under which EPF, through a jointly formed subsidiary called Everyday People Payments Inc. (“Everyday Payments”), will be assigned full operational management, compliance oversight, and technology administration of XTM’s Canadian network branded card and digital wallet programs. The MSA is expected to have an initial term of five years from the effective date, automatically renewing for successive five-year periods unless terminated earlier in accordance with the terms of the agreement.
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This agreement combines both companies’ payment technologies under EPF’s Digital Commerce Bank (“DC Bank”) issuing and processing platform, creating one of Canada’s most comprehensive fintech ecosystems for earned wage access, corporate disbursement, and digital wallet solutions.
“This partnership accelerates our strategy to deliver a unified, scalable, and compliant payments infrastructure across North America,” said Gordon J. Reykdal, Executive Chairman of Everyday People Financial Corp. “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.”
“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,” said Marilyn Schaffer, Chief Executive Officer of XTM Inc. “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.”
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Transaction Economics
XTM contributes advanced financial technology, a powerful sales network, and a loyal consumer base with approximately 200,000 active card users, while EPF adds a decades-long partnership with DC Bank, a proven operational framework, and a customer-first brand philosophy focused on service excellence. Pursuant to the terms of the MSA:
- The jointly formed subsidiary called Everyday Payments will be owned 90% by XTM and 10% by EPF with significant net revenue milestones allowing EPF to earn additional equity over time to a maximum of 49.9% with a right of first refusal option to purchase XTM’s shares of Everyday Payments at a later mutually acceptable date.
- EPF will assume full management and cost responsibility for all Canadian network branded card, and wallet programs under the Everyday Payments brand.
- XTM’s historical operating costs, including technology support, compliance, reconciliation, and program management, will be fully eliminated, replaced by EPF’s existing infrastructure and personnel.
- EPF will manage these programs with fewer than six incremental team members, leveraging its integrated systems to achieve material 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 share after deducting only direct network, banking and processor costs.
XTM’s net revenues in 2024 were $9.1 million and the collaboration is anticipated to generate annualized revenues in line with historical results within twelve months of full transition, with a significant increase in bottom-line profit share due to EPF’s cost absorption and consolidated operations. The MSA is structured as a capital-light, profit-sharing model requiring minimal new headcount and no shareholder dilution.
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“With EPF managing all operational, compliance, and technology layers, XTM immediately eliminates significant ongoing costs while maintaining participation in future revenues,” added Tyler Hatch, EPF Co- CEO, EP Financial Services. “The efficiency of this integration, executed with fewer than six new hires, translates directly to higher EBITDA and margin expansion for both companies.”
Strategic Rationale
- Cost Efficiency: XTM removes the burden of legacy operational costs, resulting in immediate improvement to its cash flow and profitability.
- Regulatory Compliance: EPF serves as the Payment Service Provider of Record, ensuring full alignment with Bank of Canada oversight.
- Scalability: Unified processing under EPF’s infrastructure enables faster client onboarding, real- time settlement, and expansion into new verticals including hospitality, gig, and franchise payroll.
- Revenue Synergy: Shared monetization across interchange, SaaS, and lending programs enhances 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.
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Source: businesswire