Ms. Marilyn Schaffer reports

EVERYDAY PAYMENTS, COMMENCES RPAA COMPLIANCE PROCESS FOR THOUSANDS OF HOSPITALITY BUSINESSES

XTM Inc. has commenced the Retail Payment Activities Act (RPAA) compliance process through its management services subsidiary, Everyday People Payments Inc., for thousands of hospitality businesses across Canada.

"Applying under the RPAA to the newly formed Everyday Payments is a natural extension of how we operate our business," said Gordon Reykdal, executive chairman of Everyday People Financial Corp. and board member, Everyday Payments. "We welcome a clear and robust regulatory framework and believe it strengthens trust across the payments ecosystem, benefiting consumers, merchants and partners alike."

Pursuant to the management services agreement entered into between XTM and EP Payments on Oct. 22, 2025, EP Payments has been operating the Everyday platform, focused on enhancing system capabilities and establishing long-term operational stability. On Jan. 28, 2026, additional risk mitigation measures were implemented to address legacy operational practices, including:

• Implementation of regulated trust accounts for each client, expected to be completed within 30 to 45 business days;
• Transition from weekly to daily withdrawals, improving reconciliation, control and operational visibility;
• Enhanced audit and review rights for business owners to independently assess account standing.

"The RPAA framework represents a meaningful step forward for XTM as we complete the migration of AnyDay to Everyday Payments," said Marilyn Schaffer, chief executive officer of XTM. "This progress would not have been possible without the expertise and infrastructure of the EPP team. While the transition has included challenges related to reconciliation and technology alignment, we welcome the rigor and discipline the RPAA brings and look forward to building from a position of strength."

The Retail Payment Activities Act, which came into force in stages beginning in November, 2024, is a Canadian federal law establishing a comprehensive regulatory framework for payment service providers (PSPs). Administered by the Bank of Canada, the act requires PSPs to register, implement operational risk management frameworks, safeguard end-user funds and adhere to incident reporting requirements. Registration under the RPAA opened on Nov. 1, 2024.

As part of this framework, the newly formed Everyday Payments to which the AnyDay Canadian hospitality tip-out solution was transitioned is implementing policies and controls aligned with the Act's requirements, including enhanced risk management practices, safeguarding of end-user funds and formal incident reporting processes.

As a critical service for the Canadian hospitality industry, Everyday Payments is committed to remaining fully operational and continues to serve its customers while the RPAA registration implementation is under way.

About XTM Inc.

XTM 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 is widely adopted across the hospitality, personal care and retail sectors. Trusted by leading brands, XTM's platform delivers speed, transparency and regulatory-aligned payroll experiences.

About Everyday People Payments Inc.

Everyday Payments is a strategic management services subsidiary of XTM, operating the business of delivering real-time employee payouts. Businesses using the service span hospitality, food service, beauty, wellness and commission-based industries. Leveraging the AnyDay platform, the solution combines a powerful employer portal with a flexible mobile app and payment card for cardholders; simplifying fund management, improving visibility and control, and enabling faster, more predictable access to earnings. The platform is designed to support the future introduction of additional value-added financial services as business and worker needs evolve.

We seek Safe Harbor.