Citing concerns about missing money, the Bank of Canada has ordered fintech firm XTM Inc. to immediately halt retail payment activity.
On Tuesday, the central bank issued a temporary order against the Toronto-based firm — which operates a payment service that handles the distribution of tips for workers in the hospitality industry, among others — demanding that the firm and its affiliates cease their activities in retail payments.
“The order prohibits XTM or its affiliates from conducting any transactions or withdrawals from accounts associated with the AnyDay platform,” the bank said in a release, citing its “serious concerns that XTM failed to safeguard client funds in its possession and has reason to believe that allowing XTM to continue to perform retail payment activities could be prejudicial to the public’s interest.”
According to the order, XTM disclosed that, “while operating as a [payment services provider] in providing the AnyDay platform services, XTM failed to safeguard end-user funds in its possession, and caused a significant shortfall in end-user funds to accrue.”
The bank said it’s concerned that “a shortfall of this magnitude has caused harm to end users.”
The compliance order was issued under new retail payments legislation, Retail Payments Activities Act (RPAA), that took effect in September 2025.
The temporary order is in effect for 30 days.
Under the order, XTM has seven days to submit a plan for complying with the rules for payments services, or to transition its retail activities to another registered firm; and it has 14 days to make representations to get the order lifted.
“If XTM fails to make representations within 14 days, or if XTM makes representations, and the managing director is not satisfied that there are sufficient grounds for revoking the order,” then the order will stay in place after the 30-day period.