Everyday People Financial Corp. and XTM Inc. Form Strategic Management Services Partnership to Elevate Canadian Payments Operations
Everyday People Financial Corp. have officially entered into a pivotal Management Services and Program Management Agreement (“MSA”), effective October 22, 2025. Under this strategic arrangement, EPF will assume comprehensive operational, compliance, and technology oversight of XTM’s Canadian network branded card and digital wallet programs through a newly formed joint subsidiary, Everyday People Payments Inc. (“Everyday Payments”). The MSA has an initial term of five years and is designed to automatically renew in successive five-year periods unless terminated earlier under the terms outlined in the agreement.
The collaboration is structured to combine the core strengths of both organizations, leveraging EPF’s Digital Commerce Bank (“DC Bank”) issuing and processing platform and XTM’s existing client base and technology. This integration is expected to create one of the most robust fintech ecosystems in Canada, spanning earned wage access, corporate disbursement, and digital wallet solutions.
Accelerating Strategic Growth
Gordon J. Reykdal, Executive Chairman of Everyday People Financial Corp., highlighted the strategic significance of the partnership: “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.”
Similarly, Marilyn Schaffer, Chief Executive Officer of XTM Inc., emphasized the immediate benefits for her organization. “Partnering with EPF ensures that our programs operate on some of the most compliant infrastructure available in Canada while introducing new features, including lending, that enhance user experience. This partnership enables XTM to focus on expanding cross-border gig-payments and earned wage access across multiple verticals. Importantly, the agreement is immediately accretive to XTM’s financial performance and aligns with our broader objectives of debt reduction, sustainable growth, and profitability.”
Transaction Economics and Structure
The strategic partnership leverages complementary strengths of the two companies. XTM contributes a highly advanced financial technology platform, a strong sales network, and a dedicated consumer base consisting of approximately 200,000 active card users. EPF brings decades of operational experience through its partnership with DC Bank, a tested compliance and operational framework, and a customer-focused brand philosophy built on service excellence.
Under the terms of the MSA:
- Everyday Payments will be jointly owned, with XTM holding a 90% stake and EPF a 10% stake initially. EPF has the opportunity to earn additional equity over time, up to a maximum of 49.9%, contingent on achieving net revenue milestones. Moreover, EPF has a right of first refusal to purchase XTM’s shares of Everyday Payments at a mutually agreed-upon date in the future.
- EPF assumes full management responsibility for all Canadian network branded card and wallet programs under the Everyday Payments brand.
- XTM’s historical operating expenses, including technology support, compliance oversight, reconciliation, and program management, will be fully eliminated. These responsibilities are transferred to EPF’s infrastructure and personnel, ensuring operational continuity while reducing overall costs.
- The programs will be managed efficiently, requiring fewer than six additional team members, as EPF leverages its integrated systems to achieve material economies of scale.
- All operations will run under EPF’s DC Bank Visa platform, guaranteeing compliance with Canadian regulatory requirements and daily settlement through trust accounts.
- Net revenue sharing is structured to account for direct network, banking, and processor costs, ensuring transparent and predictable financial outcomes.
XTM’s net revenues for 2024 were $9.1 million. With the MSA in place, annualized revenues are anticipated to remain consistent with historical results within the first twelve months of full operational transition. The partnership is expected to generate significant bottom-line improvements for both companies, primarily due to EPF’s assumption of operational costs and consolidated management approach. Notably, the MSA adopts a capital-light, profit-sharing model that requires minimal incremental headcount and imposes no shareholder dilution.
Tyler Hatch, Co-CEO of EPF Financial Services, emphasized the operational and financial efficiencies of the arrangement: “With EPF managing all operational, compliance, and technology layers, XTM immediately eliminates substantial ongoing costs while continuing to participate in future revenues. Executing this integration with fewer than six new hires translates directly into higher EBITDA and improved margin expansion for both organizations.”
Strategic Rationale for the Partnership
The collaboration is underpinned by several strategic drivers that enhance efficiency, compliance, and scalability.
- Cost Efficiency: By transferring operational responsibilities to EPF, XTM significantly reduces its legacy costs, leading to immediate improvements in cash flow and profitability.
- Regulatory Compliance: EPF will act as the Payment Service Provider of Record, ensuring alignment with oversight from the Bank of Canada. This structure strengthens the regulatory positioning of both companies.
- Scalability: Operating under a unified processing infrastructure enables faster client onboarding, real-time settlement, and expansion into new verticals such as hospitality, gig economy, and franchise payroll.
- Revenue Synergy: The integration creates shared monetization opportunities across interchange, software-as-a-service (SaaS), and lending programs, providing predictable and recurring income streams for both parties.
- Technology Continuity: XTM’s proprietary wallet and app technology will continue to operate under the Everyday Payments brand. EPF will manage ongoing compliance, integration, and operational support, ensuring technology continuity while enhancing customer experience.
Impact on Shareholders and Market Position
For shareholders, the agreement represents a strong value proposition. By combining XTM’s established user base and cutting-edge technology with EPF’s operational excellence and banking infrastructure, the partnership creates a platform poised for sustainable growth and enhanced profitability.
From a market perspective, Everyday Payments positions itself as one of Canada’s most comprehensive fintech ecosystems. The integrated platform spans multiple payment verticals, including earned wage access, corporate disbursements, and digital wallet services, offering businesses and consumers a seamless, compliant, and technologically advanced solution. The combined infrastructure also enables faster innovation and feature deployment, strengthening both companies’ competitive advantage in the Canadian and North American fintech markets.
