The Bank of Canada has taken action against XTM Inc., a company offering payment services for the hospitality industry, by issuing a temporary order requiring it to halt all retail payment activities. This decision follows numerous complaints from restaurant owners in British Columbia regarding missing tip funds that were managed through XTM's platform, previously known as AnyDay. The service, which was designed to facilitate the distribution of tips to staff via pre-paid cards, is now under scrutiny as multiple establishments report significant financial discrepancies in their accounts.

Several restaurant owners have claimed that they have not received the tips owed to their employees, with some reporting the loss of thousands of dollars. Among the affected are Eric Griffith, who indicated a shortfall of $4,500 at his businesses in Whistler, and Matthew Upton, who reported a missing amount of $12,000 at The Broken Seal restaurant in Squamish. In total, a variety of establishments across the region have come forward with similar claims, raising serious concerns about the management practices of XTM and the safety of funds entrusted to their platform.

The implications of this situation are severe for the hospitality sector, particularly as it faces ongoing challenges in the wake of the pandemic. With staff depending on tips for a significant portion of their income, any disruptions in payment can have dire consequences for their livelihoods. The Bank of Canada’s intervention emphasizes the need for regulations in the third-party payment sector to protect businesses and workers alike. As investigations unfold, the focus will also likely be on how XTM responds to these allegations and the steps they will take to regain the trust of their clients.