The Popularity Of Earned Wage Access Programs Is Rising; This EWA Provider Is Raising $5 Million To Capitalize Through Expansion Into New Markets

TORONTO, ON / ACCESSWIRE / June 14, 2023 / XTM Inc. (OTCQB:XTMIF) is raising $5 million through a non-brokered private placement of convertible debentures. The Toronto-based financial technology (fintech) company is focused on innovative and disruptive fintech services for service industries such as hospitality, personal care and service staff.

Each Convertible Debenture Unit will be priced at $1,000, for gross proceeds of $5 million. A unit will include $1,000 in unsecured convertible debenture plus 1,000 common share purchase warrants. The convertible debenture will bear interest of 10% per annum.

Capital raised from the convertible debenture will be used for expanding the company's earned wage access (EWA) service in the U.S., as well as strategic acquisitions and general corporate purposes. EWA provides employees with early access to wages outside of the traditional bi-weekly or monthly payroll schedule.

Increasing Trend Toward EWA Services

XTM is positioning itself as a leader of EWA fintech for the services industry. As increasingly sophisticated technology streamlines financial transactions, the fintech market is growing at a rapid pace. The fintech market was worth $133 billion globally in 2022 and is expected to reach a value of $556 billion by 2030, growing at a compound annual growth rate (CAGR) of 19.5% during the forecast period.

The shift toward digital financial services means transactions are conducted at a much faster rate. Support for EWA and faster payment schedules has been on the rise recently, with 60% of working Americans saying employers should provide daily wage access. This sentiment is partly driven by financial insecurity, with many Americans living paycheck to paycheck and only 37% able to cover an expected $500 expense.

In particular, positive sentiment toward EWA has been on the rise most dramatically since the COVID-19 pandemic. The number of workers concerned that they won't have enough money to make it to the next paycheck has risen by 12% since 2018, and employees are saying that they would feel more valued by their employers if they offered EWA services. 56% also said they would stick with a job longer if it included EWA.

Expanding Its Leadership Position In Fintech

XTM is looking to expand its EWA services - which include on-demand payments and an all-in-one service platform - to capitalize on this increasingly popular trend within the payroll sector. It pairs its EWA solution with direct deposit accounts, pre-authorized debits and card issuing services for a turnkey solution that satisfies both employees and businesses.

The company recently partnered with the world's largest global employer of record (EOR) and agent of record (AOR) services platform, People2.0. This partnership provides People2.0 with access to XTMs EWA Payment and Staff Management Platform.

Other companies in the space include SoFi Technologies Inc., Fleetcor Technologies Inc., Nuvei Corp, and EVO Payments Inc.

Find out more about what XTM is doing in the fintech sector.

Featured photo by Towfiqu barbhuiya on Unsplash.

Investor Contact:

Tyler Troup
Circadian Group IR
Info@circadian-group.com

SOURCE: XTM Inc.