The Bank of Canada has issued a temporary order to XTM Inc. to immediately cease performing retail payment activities under the Retail Payment Activities Act (RPAA).
The Canadian central bank issued the order on 17 February 2026 under section 94(4) of the RPAA. The order applies to XTM and its affiliated entities, prohibiting the company or its affiliates from conducting transactions or withdrawals from accounts associated with the AnyDay platform.
XTM operates a payment service for restaurant owners to aggregate and distribute tips to staff through prepaid cards via the AnyDay platform, formerly branded as the Everyday platform. The company is registered as a payment service provider with the Bank of Canada.
Safeguarding failures prompt regulatory action
The Bank of Canada has concerns that XTM failed to safeguard client funds in its possession. XTM's public financial statements confirm that while operating as a payment service provider, the company failed to safeguard end-user funds, causing a significant shortfall to accrue.
The Managing Director responsible for retail payment supervision is concerned that XTM may have violated and continues to violate the RPAA, particularly end-user funds safeguarding obligations. The regulator believes XTM's ongoing involvement and role in the AnyDay platform services could have a significant adverse impact on end users.
The temporary order requires XTM to cease holding itself out as a payment service provider in any public communications. The company must provide the Managing Director with a compliance plan within seven days, detailing how it intends to meet RPAA obligations and, if applicable, transition retail payment activities to another registered payment service provider.
Regulatory framework and enforcement mechanisms
Section 94(1) of the RPAA grants the Managing Director authority to order a payment service provider to cease acts that could have a significant adverse impact on individuals or entities. Normally, payment service providers must be allowed to make representations before orders are issued.
However, section 94(4) permits temporary orders without prior representations if the Managing Director believes the time required for representations would be prejudicial to public interest. Temporary orders cease after 30 days unless no representations are made, or if made, the Managing Director determines insufficient grounds exist for revocation.
XTM has 14 days from 17 February 2026 to make representations about whether the order should be revoked. If XTM fails to make representations or if the Managing Director finds insufficient grounds for revocation, the order continues beyond the 30 days.
The order requires XTM to preserve all documents, records, and electronically stored information relevant to its activities as a payment service provider.
Canada's Retail Payment Activities Act establishes a regulatory framework for payment service providers operating in Canada or directing services to Canadian end users. The Bank of Canada administers the framework, with registration requirements taking effect in stages from 2023.
