TORONTO, Sept. 26, 2024 /CNW/ - Payfare Inc. (TSX: PAY) (OTCQX: PYFRF), a leading international Earned Wage Access ("EWA") company powering instant access to earnings and digital banking solutions for workforces, today announced that its core services agreement related to DoorDash, Inc.'s DasherDirect card program will not be renewed beyond the current term in early 2025.

DasherDirect is currently Payfare's largest program, and the revenue derived from the program has been a substantial proportion of Payfare's total revenues. As such, Payfare is withdrawing its previously issued 2024 financial guidance for revenue and earnings, as the Company and DoorDash establish a transition plan to begin in the fourth quarter of 2024. Both parties are expected to work collaboratively during the remainder of the term.

Payfare has over $100 million in cash, cash equivalents, and guaranteed investment certificates and is well capitalized to fund its new strategic initiatives.

Payfare continues to see high growth with its other client programs and is working on securing new, large-scale EWA programs in both the gig economy and employee verticals. The Company believes the aggregate Gross Dollar Value ("GDV") from these opportunities could mitigate the impact of the DoorDash non-renewal.

Board of Directors Update

Following receipt of his resignation to be effective on September 26, 2024, Mr. Hugo Chan will no longer serve as a director of the Company. Mr. Chan, who has served on the Board during the prior two years has since moved to become a resident in Asia and has resigned for personal reasons. The Company thanks Mr. Chan for his expertise and support over the years.

About Payfare (TSX:PAY, OTCQX: PYFRF)

Payfare is a leading, international Earned Wage Access company powering instant access to earnings through an award-winning digital banking platform for today's workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms and employers to provide financial security and inclusion for all workers.

Cautionary Statement Regarding Forward Looking Information

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Payfare's current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include, without limitation: the actual timing for the non-renewal and eventual termination of the Company's services agreement with DoorDash, the anticipated material impact on future revenues and earnings, winning new EWA programs in both the gig economy and employee verticals and aggregate potential new GDV opportunities being able to mitigate the impact of the non-renewal of the Agreement with DoorDash. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.