Everyday People Financial Corp. and XTM Inc. Announce Strategic Management Services Agreement to Integrate Canadian Payments Operation

Core Insights - Everyday People Financial Corp. (EPF) and XTM Inc. have entered into a Management Services Agreement to integrate their Canadian payments operations, enhancing their fintech ecosystem [1][2][3] Company Overview - Everyday People Financial Corp. is a technology-driven financial services company established in 1988, with over 600 employees operating in the UK and Canada [7] - XTM Inc. focuses on providing advanced financial technology and has a loyal consumer base with approximately 200,000 active card users [4] Strategic Partnership - The partnership aims to create a unified, scalable, and compliant payments infrastructure across North America, combining XTM's technology and client base with EPF's operational framework [3][4] - The agreement includes a jointly formed subsidiary, Everyday People Payments Inc., with XTM owning 90% and EPF 10%, allowing EPF to earn additional equity over time [4][5] Financial Impact - XTM's net revenues in 2024 were $9.1 million, and the collaboration is expected to generate annualized revenues in line with historical results within twelve months of full transition [5] - The MSA is structured as a capital-light, profit-sharing model, requiring minimal new headcount and no shareholder dilution, leading to higher EBITDA and margin expansion for both companies [5][6] Operational Efficiency - EPF will manage all operational, compliance, and technology layers, eliminating significant ongoing costs for XTM while maintaining revenue participation [6][13] - The integration is designed to achieve material economies of scale with fewer than six new hires, enhancing cash flow and profitability for XTM [4][6] Technology and Compliance - All programs will operate under EPF's DC Bank Visa platform, ensuring regulatory compliance and daily settlement through trust accounts [12][13] - XTM's proprietary wallet and app technology will continue to operate under the Everyday Payments brand, with ongoing management and compliance provided by EPF [13]