An Edmonton-based FinTech company that manages tips and staff wages is in hot water after dozens of customers in British Columbia say it abruptly stopped distributing money, leaving some businesses in the hole for tens of thousands of dollars.
Global News reports that clients of Everyday Payments allege money from the digital wallets the platform uses to store client tips or staff wages appears to have disappeared from their accounts or not been released. Everyday Payments is a division of Everyday People Payments, a joint subsidiary of Canada-UK firm Everyday People, and Toronto FinTech XTM. BetaKit has reached out to all three companies for comment, and has yet to receive a response.
“We are aware of these concerns, and we are looking into the matter.”
Bank of Canada
“We’re missing $4,550,” Eric Griffiths, owner of Alta Bistro and Alpha Cafe in Whistler, BC, told Global News. The Broken Seal, in Squamish, BC, is allegedly missing $12,000, while another Vancouver-based restaurant is allegedly missing nearly $1 million from its digital wallet, according to Global’s reporting.
The Bank of Canada, which oversees payment service providers (PSPs) under the Retail Payment Activities Act (RPAA), said it is aware of the reports.
“We are aware of these concerns, and we are looking into the matter,” a statement emailed to BetaKit from the BoC read. “We cannot comment further on specific cases, but the Bank has tools at its disposal to further promote PSP compliance with their obligations under the RPAA.”
A Monday press release had stated that XTM had commenced the Retail Payment Activities Act compliance process for Everyday People Payments. That release added that in January, additional “risk mitigation measures” had been implemented to address some legacy operational practices with Everyday People Payments.
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But on Wednesday, XTM stated that Everyday People is not registered or required to be registered under the RPAA, but that XTM is and has at all times been a registered money services business.
“All cardholder funds associated with the platform are held in trust in accordance with applicable legal and safeguarding requirements and are segregated from operating funds,” XTM stated.
Early last month, XTM had announced that it had moved more than 100,000 customers over to Everyday Payments’ Google and Apple wallets.
BetaKit reached out to both the Royal Canadian Mounted Police and Edmonton Police Service for comment on whether any reports had been received or investigations initiated, but as of press time, had not received a response.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Photo courtesy of Unsplash.