The Bank of Canada has instructed XTM Inc. to halt retail payment activities immediately under the Retail Payment Activities Act (RPAA).
This directive was issued on 17 February 2026 pursuant to section 94(4) of the RPAA, affecting XTM and its related entities. The order prohibits transactions or withdrawals from accounts linked with the AnyDay platform.
XTM runs a payment service for restaurant owners to collect and distribute tips to staff through prepaid cards using the AnyDay platform, previously known as the Everyday platform. It is registered with the Bank of Canada as a payment service provider.
Safeguarding Issues Lead to Regulatory Action
The Bank of Canada has reservations about XTM’s failure to protect client funds held in its custody. Financial statements reveal that during its tenure as a payment service provider, the company did not secure user funds properly, resulting in substantial financial shortfalls.
The Managing Director overseeing retail payment supervision is concerned that XTM might have breached and continues to breach RPAA provisions, especially concerning safeguarding end-user funds. The regulator believes ongoing involvement with AnyDay platform services could harm end users significantly.
XTM must cease presenting itself as a payment service provider in public statements. Within seven days of the order, it is required to submit a compliance plan to the Managing Director outlining its strategy for meeting RPAA requirements and transitioning retail payment activities if necessary.
Regulatory Context and Enforcement
Section 94(1) of the RPAA empowers the Managing Director to issue orders halting activities that could harm individuals or entities, typically after allowing representations. However, section 94(4) permits temporary orders without prior input when deemed necessary for public interest.
The current order is set to last for 30 days unless XTM fails to provide representations or the Managing Director deems them insufficient. During this period, XTM must retain all pertinent documents and records related to its payment service provider activities.
The Canadian Retail Payment Activities Act governs payment service providers operating in Canada or serving Canadian end users. The Bank of Canada enforces this framework, with registration obligations phased from 2023 onwards.
