XTM Reports on Everyday People Payments Service Outage and Halting of Activities Pursuant to Bank of Canada Compliance Order
Executive Summary
- XTM Inc. is subject to a compliance order from the Bank of Canada requiring an immediate cessation of its business portal and all retail payment activities.
- The company’s wallet balances were $12,830,224.20 at the time control was transferred to Everyday People Financial Corp., and many merchants have been unable to transact since the January 26, 2026 outage.
- Trading of XTM’s common shares on the CSE will remain halted while the company works with regulators, lenders, and advisors to resolve the matter and consider financing or restructuring options.
Key Details
- Compliance Order (Feb 17 2026):
- Requires XTM to stop operating its business portal platform and all retail payment activities, including withdrawals.
- Company must submit a compliance plan to the Bank of Canada within seven days outlining how it will meet obligations under the Retail Payment Activities Act (RPAA).
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The company has 14 days to make representations to the Bank of Canada requesting revocation of the order; failure to do so or an unsatisfactory response will keep the order in effect.
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Platform Service Outage (Jan 26 2026):
- Outage linked to Management Services Agreement with Everyday People Financial Corp. and a blocked‑account agreement executed on Nov 30 2025.
- Wallet balances at transfer were $12,830,224.20; many business users could not transact due to abrupt funding changes.
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Investigation ongoing into unauthorized pre‑authorized debits and the impact on lending activity and balance procedures.
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Financial Safeguards:
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Cardholder funds for Everyday People Payments Financial debit cards remain held in trust with a Canadian Schedule 1 chartered bank since program inception (2020).
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Potential Remedies & Financing:
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Board, legal counsel, and accountants are evaluating options including a new lending facility, various financing structures, or restructuring arrangements to restore merchant wallet balances.
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Share Trading Status:
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CSE ticker “PAID” remains halted pending resolution of the regulatory and operational issues.
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Forward‑Looking Statements:
- The release contains numerous forward‑looking statements regarding future financing, regulatory engagement, and the company’s ability to continue as a going concern.
Notable Quotes
- Marilyn Schaffer, CEO: “We are actively working with regulators, our partners, and advisors to develop a compliant path forward and restore confidence for our merchants and cardholders.”