XTM Reports on Everyday People Payments Service Outage and Halting of Activities Pursuant to Bank of Canada Compliance Order
MWN-AI** Summary
XTM Inc. (OTCQB: XTMIF | CSE: PAID) has announced a significant service outage affecting its platform following a compliance order issued by the Bank of Canada on February 17, 2026. The service outage, which began on January 26, 2026, stems from operational disruptions associated with its Management Services Agreement (MSA) with Everyday People Financial Corp. The Company executed a blocked account agreement on November 30, 2025, limiting its ability to transfer funds and altering operational functionality without prior notice or guidance. As a result, many business users reported an inability to transact on their accounts.
In light of the compliance order, XTM will temporarily suspend operations of its business portal, halting all retail payment activities, including withdrawals. The Company will have seven days from the order's issuance to submit a plan detailing how it intends to comply with the Retail Payment Activities Act (RPAA).
The Company is actively investigating the impact of unauthorized modifications on its operations and evaluating potential options for restoring wallet balances. Although they expect to engage with various stakeholders to address the situation, a definitive plan remains unconfirmed. Additionally, XTM reassured that funds related to Everyday People Payments Financial debit cards have always been secured in trust with a Canadian Schedule 1 Chartered bank.
Trading of XTM’s shares on the CSE will remain suspended until the outstanding issues are resolved. The Company, including its board and advisors, is exploring avenues for financing and restructuring as it navigates through this challenging period. Further updates are anticipated as more information becomes available and required by law.
MWN-AI** Analysis
XTM Inc. (CSE: PAID), a notable player in the fintech space, is facing significant operational challenges, as evidenced by the January 26, 2026, payment service outage connected to its partnership with Everyday People Financial Corp. The immediate impact of this outage, alongside a compliance order from the Bank of Canada halting its operations, creates a highly uncertain environment for investors.
The service disruption arose from a blocked account agreement signed in late November 2025, restricting the company’s control over its funds. With wallet balances exceeding $12.8 million at the time of the transition, the abrupt modification of transaction capabilities has left many business users unable to operate effectively. Moreover, allegations of unauthorized use of pre-authorized debits further exacerbate operational disruptions, casting doubt on the company's governance and risk management practices.
As XTM works to comply with the Bank of Canada's order, which necessitates a comprehensive plan for restoring operations within 14 days, the timeline and eventual success of these efforts remain unclear. The company has indicated that it is exploring alternative financing options, including restructuring, which could offer avenues for recovery. However, the ongoing suspension of trading for XTM shares adds a layer of risk for potential investors.
Given these current conditions, a cautious approach is advisable. Investors should closely monitor updates regarding the outcome of the compliance order and any proposed strategic plans by the company. The inherent risks amplify the volatility of XTM’s stock, making it more suitable for risk-tolerant investors who can absorb potential losses resulting from operational setbacks or regulatory challenges. Overall, it is paramount to wait for clearer indications of stability and recovery efforts before considering investment in XTM Inc.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
XTM Inc. (OTCQB: XTMIF | CSE: PAID) (the “ Company ”) provides an update on the platform service outage that occurred on January 26, 2026 (the “ Outage ”) and is continuing in connection with the Management Services Agreement (“ MSA ”) entered with Everyday People Financial Corp which was previously disclosed on October 22, 2025, February 2, 2026 and February 5, 2026. The Company confirms that as part of the MSA, the Company executed a blocked account agreement on November 30, 2025 which restricts the Company’s ability to move funds from its accounts. On the date that the Company transfered control of its accounts to Everyday People Financial Corp. at 11:59 pm on November 30, 2025 the wallet balances were $12,830,224.20. Many business users as of January 26, 2026 could not transact from their business portal due to funding practices being abruptly modified without notice or specific instructions of the Company. The Company is investigating the operational level impact the unauthorized modifications had on businesses and the Company, including the cessation of lending activity and certain balancing procedures. Also, the use of pre-authorized debits without the specific instructions of the Company is under investigation. All options that may be available to the Company related to restoring portal wallet balances are being considered. At this time, the Company does not have certainty on a specific plan and is working with various parties for resolution.
Pursuant to a compliance order issued by the Bank of Canada on February 17, 2026 (the “ Order ”), the Company will temporarily cease the operations of its business portal platform. Further to the Order, the Company will be ceasing all retail payment activities including withdrawals. The Company will cease to maintain operations as a payment service provider that is registered with the Bank of Canada pursuant to, and in compliance with, the Order. Pursuant to the Order, the Company expects within seven days of the date of the Order, to provide the Bank of Canada with a plan of how the Company intends on complying with its obligations under the Retail Payment Activities Act (RPAA), and if applicable, transition the Company’s retail payments activities to another payment service provider that is registered under the RPAA or has applied for registration. Pursuant to the Order, the Company has 14 days from the date of the Order to make representations to the Bank of Canada about whether the Order shall be revoked. In the event that the Company does not make representations within 14 days of the date of the Order, or if the Company makes representations, and the Bank of Canada is not satisfied that there are sufficient grounds for revoking the Order, then the Order continues to be in effect, unless it is revoked.
Unrelated to the Outage, the Company confirms that cardholder funds in respect of Everyday People Payments Financial debit cards which make up a significant portion of the Company’s revenues are held and continue to be held in trust since the program’s inception in 2020 with a Canadian Schedule 1 Chartered bank.
The Company including its board of directors, legal counsel and accountants are considering all options available to it, including but not limited to a new lending facility, various forms of financing or restructuring arrangements and a plan to restore merchant wallet balances. The trading in the Company’s common shares under the trading ticker “PAID” on the CSE will remain halted until it is determined that the matter has been satisfactorily resolved. Company intends to make further disclosure as more information comes to light and as required by law.
About XTM Inc.
Subject to the terms of the Order, XTM Inc. is a Toronto-based fintech enabler and the founder of AnyDay® , a real-time payroll, tip, and earned wage access platform. Designed as a compliance-first solution, AnyDay has been widely adopted across the hospitality, personal care, and retail sectors ( www.paidanyday.com ). XTM and its affiliates are subject to the terms of the Order and readers are encouraged to read the Order in its entirety.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release are forward-looking statements, including with respect to future plans of the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Some of the specific forward-looking information in this news release includes, but is not limited to, statements with respect to: future plans in respect of seeking a lending facility, the program deposits, the objective of avoiding service disruptions, use of funds, the plans of the Company and engagement with regulators, and consideration of available options including the Company’s ability to continue as a going concern. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions, the ability to manage operating expenses, dependence on key personnel, compliance with various agreements including lenders. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future including in the fintech industry, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward looking statements include, the continued availability of capital and financing, litigation, failure of counterparties to perform their contractual obligations, failure to obtain regulatory or corporate approvals, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the " U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The CSE has neither approved nor disapproved the contents of this press release and the CSE does not accept responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260219107417/en/
For more information:
Marilyn Schaffer, CEO
finance@xtminc.com
Tel: 416-260-1641
FAQ**
How does XTM Inc. (XTMIF) plan to address the financial impact on business users due to the unauthorized modifications related to the platform service outage?
What specific actions is XTM Inc. (XTMIF) considering to comply with the Bank of Canada's compliance order and restore its business portal operations?
Can XTM Inc. (XTMIF) provide updates on the timeline for resolving the halted trading of its common shares and restoring merchant wallet balances?
What steps is XTM Inc. (XTMIF) taking to secure a new lending facility or financing options in light of the operational challenges it faces due to the ongoing service outage?
**MWN-AI FAQ is based on asking OpenAI questions about XTM (OTC: XTMIF).
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