XTM’s AnyDay™ Earned Wage Access for Hospitality and Instant Tip-Out Calculator Solution Sees Surge in Demand Amid ‘No Tax on Tips’ Proposal

Rhea-AI Summary

XTM Inc. (OTC: XTMIF) is experiencing increased interest in its AnyDay™ Earned Wage Access (EWA) platform and instant tip-out calculator solution following President Trump's commitment to eliminate taxes on tips. The company currently processes hundreds of millions of dollars in instant payments annually for hospitality businesses across the U.S. and Canada.

The proposed 'No Tax on Tips' policy would remove employers' requirement to withhold taxes on tips. XTM's AnyDay™ platform offers a solution for businesses transitioning to daily, tax-free tip payouts, featuring real-time tip pooling and instant payments. According to labor statistics, 16.82 million people were employed in the U.S. hospitality and leisure industry as of December 2023, with median pay for full-service restaurant workers reaching $23.88 per hour by September 2024, a 28% increase since January 2020.

Positive

• Surge in demand for AnyDay™ platform following potential tax policy change
• Company processes hundreds of millions in instant payments annually
• Strategic positioning to benefit from potential tip tax elimination policy
• SAP-certified issuing processor ownership enhances service reliability

Negative

• None.

President Trump Vows to Deliver on ‘No Tax on Tips’ Campaign Promise During Las Vegas Speech on January 25, 2025

TORONTO--(BUSINESS WIRE)-- XTM Inc. (“XTM” or the “Company”) (OTC: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator specializing in payment solutions for the hospitality industry, is experiencing a surge in inbound interest for its AnyDay™ Earned Wage Access (EWA) platform and instant tip-out calculator solution. This interest follows President Trump’s recent commitment to eliminate taxes on tips, a policy that could significantly impact the hospitality sector.

Currently, XTM moves hundreds of millions of dollars in instant payments annually for restaurants, hotels, casinos, salons, and golf clubs across the U.S. and Canada. Its fully owned and SAP-certified issuing processor, combined with AnyDay’s real-time gratuity and Earned Wage Access technology, delivers a reliable, safe and seamless payment solution that thousands of hospitality businesses and workers rely on daily.

Speaking at a Las Vegas casino, President Trump reaffirmed his commitment to tax relief for service industry workers.

“If you’re a restaurant worker, a server, a valet, a bellhop, a bartender, or one of my caddies, your tips will be 100% yours. In the coming weeks, I’ll be working with Congress to get a bill on my desk that cuts taxes for workers, families, and small businesses—and, very importantly, keeps my promise,” said Trump. “We’re gonna get it for you—no tax on tips.”

(Read more: Bloomberg)

The policy change would mean employers are no longer required to withhold taxes on tips, removing a major administrative burden. XTM’s AnyDay™ platform offers a ready-made solution for businesses seeking to transition to a daily, tax-free tip payout system. With real-time tip pooling and instant payments, AnyDay™ enables employers to enhance recruitment and retention by ensuring service workers receive their tips instantly, at the end of each shift.

According to the U.S. Bureau of Labor Statistics, as of December 2023, 16.82 million people were employed in the U.S. hospitality and leisure industry. Median pay for full-service restaurant workers had risen to $23.88 per hour (including tips and base wages) by September 2024, reflecting a 28% increase since January 2020 (Source: ADP Research).

About XTM Inc.

XTM is a leading fintech company providing innovative payment solutions, including Earned Wage Access (EWA) and instant tip payouts, to businesses in the hospitality, personal care, and staffing industries. Its flagship product, AnyDay™, allows employees to access their earned wages on demand. XTM’s fully owned subsidiary, QRails, operates a cloud-based payment platform that powers on-demand pay solutions globally.

For more information, visit: xtminc.com

Disclaimer for Forward Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws (the “forward-looking statements”), within the meaning of applicable Canadian securities legislation, including management’s plans regarding its businesses. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect,” “plan,” “anticipate,” “project,” “target,” “potential,” “schedule,” “forecast,” “budget,” “estimate,” “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will,” “would,” “may,” “could,” “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.

While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update or alter any forward-looking statements except as required under applicable securities laws. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.

The CSE has not approved nor disapproved the contents of this press release, and the CSE does not accept responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218115192/en/

For more information please contact:

Jakob Ripshtein

finance@xtminc.com

416.260.1641

Source: XTM Inc.

FAQ

How will the proposed 'No Tax on Tips' policy affect XTM's (XTMIF) AnyDay™ platform?

The policy would increase demand for XTM's AnyDay™ platform as businesses seek solutions for transitioning to tax-free tip payouts, with the platform offering real-time tip pooling and instant payment capabilities.

What is the current payment volume processed by XTM (XTMIF) in the hospitality sector?

XTM processes hundreds of millions of dollars in instant payments annually for restaurants, hotels, casinos, salons, and golf clubs across the U.S. and Canada.

What is the market size for XTM's (XTMIF) hospitality payment solutions?

As of December 2023, the potential market includes 16.82 million people employed in the U.S. hospitality and leisure industry, with median pay reaching $23.88 per hour by September 2024.

How does XTM's (XTMIF) AnyDay™ platform benefit hospitality businesses?

The platform helps businesses enhance recruitment and retention by enabling instant tip payouts at the end of each shift, while offering real-time tip pooling and tax management capabilities.