Pateno Payments Acquires XTM’s EveryDay Platform to Launch GratiaPay for Digital Tips

Pateno Payments Inc. has completed the acquisition of XTM Inc.’s EveryDay payment program, securing a critical tip-distribution infrastructure for the Canadian hospitality sector. The deal, emerging from insolvency proceedings, provides a regulated path forward for digital disbursements under the new GratiaPay brand, ensuring continuity for service workers and merchants relying on real-time payments.

What was announced

Pateno Payments Inc. has finalized the purchase of specific assets from XTM Inc., most notably the EveryDay payment program and its underlying software. This transaction follows approval from the Ontario Superior Court of Justice on September 1, 2026, as part of XTM’s restructuring under the Companies’ Creditors Arrangement Act (CCAA). Pateno now assumes full ownership and operational control of the platform.

The EveryDay Program is a specialized fintech solution designed for Canadian businesses, particularly within the hospitality and service sectors. It facilitates the digital distribution of tips and other approved payments to staff, replacing traditional cash-based systems. Pateno, which is registered as a Payment Service Provider with the Bank of Canada, plans to transition the service to a new brand identity: GratiaPay. This rebranding will encompass merchant portals, wallet-holder interfaces, and all program communications. The company has also confirmed that new physical and virtual cards will be issued under the GratiaPay banner.

Operating under the Retail Payment Activities Act (RPAA), Pateno aims to stabilize the platform’s operations while maintaining uninterrupted access for existing merchants and cardholders. The focus of the new management is on providing a secure and compliant foundation for payment disbursements across Canada, ensuring that the transition remains seamless for the businesses and workers currently utilizing the software.

The companies involved

Pateno Payments Inc. is a Canadian fintech firm focused on payment processing and disbursement solutions. As a registered Payment Service Provider, the company operates within the regulatory framework of the Bank of Canada and the Retail Payment Activities Act, positioning itself as a compliant alternative in the high-volume hospitality payment space. The acquisition of XTM Inc.’s assets marks a significant expansion of Pateno’s footprint in the domestic market. The leadership of Pateno includes Pamela Draper, who serves as President and brings experience from the broader payments landscape, having previously been associated with DCPayments.

XTM Inc., the seller in this transaction, entered CCAA proceedings to restructure its financial obligations, leading to the court-approved divestment of its EveryDay Program. The EveryDay platform had established itself as a prominent tool for the digital tip-sharing niche in Canada, serving a large network of restaurants and service-based businesses. By absorbing these assets, Pateno effectively takes over a ready-made ecosystem of merchants and cardholders, rebranding the legacy XTM technology to distance the service from the previous entity's insolvency proceedings and providing a new corporate home for the software.

What this means

This acquisition highlights the ongoing consolidation and regulatory maturation of the Canadian fintech sector. As the Retail Payment Activities Act (RPAA) tightens oversight, smaller or financially strained players like XTM are finding it difficult to maintain independent operations, leading to the transfer of critical infrastructure to entities with a stronger focus on compliance. For the hospitality industry, the move to GratiaPay suggests a shift toward stability over the aggressive growth often seen in the tip-out space. The challenge for the sector remains whether specialized disbursement platforms can survive as standalone products or if they will inevitably be absorbed into larger, multi-service payment providers to manage the rising costs of regulatory adherence.