Bank of Canada puts brakes on XTM over ‘significant shortfall’

The Bank of Canada has issued an immediate, temporary order requiring Toronto-based XTM Inc. and its affiliated entities to stop performing all retail payment activities, citing serious concerns about the safeguarding of client funds linked to the company’s AnyDay/Everyday tipping platform.

The order, dated Feb. 17, 2026, was issued under the Retail Payment Activities Act (RPAA) and prohibits XTM or any of its affiliates from conducting any transactions or withdrawals from accounts associated with the AnyDay platform, now also branded as Everyday.

The Bank said it believes allowing the company to continue operating could be “prejudicial to the public’s interest,” according to the temporary order and accompanying news release from the central bank.

B.C. restaurants raise alarms

The move comes as restaurants in British Columbia have raised alarms over missing staff tips allegedly tied to the same third-party platform.

B.C. restaurant operators described thousands of dollars in staff gratuities they say have not been received by workers through XTM’s system, prompting questions from employers and employees about where the money has gone.

XTM’s AnyDay/Everyday platform is marketed as a way for restaurants to “simplify tip management” and “cut the busywork,” according to the company’s website, which promises that operators will “work smarter, save money, and keep your team smiling.” The platform advertises instant payouts to staff in “less than 5 minutes,” improved operational efficiency by eliminating cash handling, and the ability to help employers meet revenue and employment standards compliance requirements.

Those marketing claims are now under sharp scrutiny in light of both the regulator’s intervention and the complaints from B.C. restaurant operators who say staff tips held in trust through the platform have not been delivered as expected.

XTM registered as payment service provider

According to the Bank’s order, Parliament has given the central bank the authority to supervise PSPs located in Canada or those directing services to end users in Canada, including with respect to how client funds are safeguarded under the RPAA.

The temporary order states that XTM’s own public financial statements confirm that, while operating as a PSP providing the AnyDay platform, the company failed to safeguard end-user funds in its possession, resulting in what the Bank describes as a “significant shortfall” in client funds.

The Managing Director responsible for retail payment supervision is “concerned that a shortfall of this magnitude has caused harm to end users,” according to the text of the order.

The Bank further notes that XTM may still be performing roles in relation to the AnyDay platform that qualify as retail payment activities under the RPAA and that the company continues to hold itself out as a PSP. The Managing Director is concerned XTM “may have been and/or continues to be in violation of the RPAA,” in particular its obligations to safeguard end-user funds.

Because of these concerns, the Managing Director concluded that waiting to give XTM time to make representations before issuing an order – as is normally required under subsection 94(3) of the RPAA – “would be prejudicial to the public interest,” and therefore proceeded under the emergency power in subsection 94(4).

Temporary order against XTM

The temporary order sets out a series of stringent conditions for XTM:

• XTM must “immediately cease performing any retail payment activities” as defined in the RPAA, including but not limited to those related to the AnyDay platform, whether carried out directly or through affiliated entities.
• The company and its affiliates are barred from directing any transactions or withdrawals from accounts associated with the AnyDay platform.
• XTM must stop holding itself out in any public communications as a PSP, whether registered with the Bank or otherwise.
• Within seven days of the date of the order, XTM must provide the Managing Director with a plan explaining how it intends to comply with its obligations under the RPAA and, if applicable, how it will transition its retail payments activities to another PSP that is registered or has applied for registration.
• XTM is required to preserve all documents, records and information, including electronic records, relating to its activities as a PSP.

The order initially remains in effect for 30 days from the date it was made. However, XTM has 14 days to make representations to the Managing Director as to why the order should be revoked for failing to meet the criteria set out in section 94(1) of the RPAA.

If XTM does not make representations within that 14-day window – or if it does so and the Managing Director is not satisfied that there are sufficient grounds to revoke the order – the order will continue beyond the initial 30-day period unless it is later revoked.