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Highlights:
- XTM announces exclusive referral agreement with KOHO to enhance services for 100,000+ AnyDay members.
- Agreement includes CAD 5 million financing and revenue-sharing model for new user acquisitions.
- Aiming for cash flow neutrality by mid-2025 as KOHO integration progresses.
XTM Inc. (CSE: PAID), a prominent provider of business support services, has announced a transformative partnership with KOHO Financial Inc., an innovative player in the Canadian fintech sector. The exclusive referral agreement, signed on November 12, 2024, aims to deliver enhanced financial tools and services to XTM's AnyDay members, a rapidly growing base of over 100,000 users across various industries, including hospitality, retail, and personal care.
Under the terms of the agreement, XTM will integrate KOHO’s extensive suite of financial services into its AnyDay platform. KOHO, known for offering users access to interest-bearing, CDIC-insured accounts, cashback rewards, and credit-building tools, will now serve as the key financial provider for AnyDay members. This expansion will grant employees of AnyDay’s SaaS clients, such as restaurant and hotel workers, access to a wide array of financial benefits, including unlimited e-Transfers, cash advances, buy-now-pay-later options, and more.
The integration will also deliver substantial cost-saving advantages for XTM. Historically, the company faced significant banking, transactional, and customer service costs that hampered profitability in its Canadian market. By partnering with KOHO, XTM is poised to eliminate these expenses, which will help offset the high cost of goods sold that have been holding back its financial performance. The move is strategically designed to set XTM on the path to a cash flow-neutral position by mid-2025, further bolstering the company’s market position.
As part of the agreement, XTM is required to secure CAD 5 million in financing within 30 days of the deal’s effective date. The companies will also work together on an ongoing revenue-sharing model, with XTM receiving customer acquisition fees and a time-bound share of revenue generated by new KOHO users. These terms not only strengthen XTM’s financial position but also provide a scalable model for continued growth.
“We believe this partnership will significantly enhance the financial wellbeing of our AnyDay members, providing them with a suite of tools to better manage their finances. In turn, it will improve our operational efficiency and support our goal of achieving profitability in Canada,” said Marilyn Schaffer, CEO of XTM.
This collaboration follows XTM’s strong three-year growth trajectory in the hospitality industry, where its AnyDay solution has become a key player in daily payouts for staff. With KOHO’s extensive customer base and financial services expertise, the two companies are well-positioned to drive forward their mission of improving financial inclusion for workers across Canada.
The full integration process is set to begin in the coming weeks, with a targeted completion date around January 31, 2025. As the rollout progresses, XTM aims to build on its existing user base and increase engagement with its mobile app and prepaid card services, now enhanced by KOHO's offerings.
