Payfare Inc. has announced a delay in filing its audited annual financial statements for the fiscal year ended December 31, 2023. The delay is due to a delay by one of the company’s material vendors in completing its annual System and Organization Controls (“SOC 1”) auditor’s report, which is required for the auditors to issue their opinion on the financial statements. As a result, Payfare will also be required to delay filing its Annual Information Form for the year. The company has made an application to the Ontario Securities Commission requesting a management cease trade order in respect of the late filing.
Despite the delay, Payfare has reaffirmed its previously issued fourth quarter and full year 2023 guidance on revenues and earnings and stated that the delay in receiving the SOC 1 report will not impact the financial outlook of the company. Payfare expects to remedy the default and file the annual financial statements by April 12, 2024. The company will issue a news release once the filings are completed and filed.
During the delay, Payfare will comply with the alternative information guidelines set out by the Ontario Securities Commission, including issuing bi-weekly default status reports. The company has confirmed that there have been no material business developments or other undisclosed material information relating to its affairs.
Payfare is a global financial technology company that provides digital banking and instant payment solutions for gig workers. The company partners with leading platforms such as Uber, Lyft, and DoorDash to provide financial services to their workforce.
Payfare operates in the financial technology industry, specifically focusing on providing digital banking and instant payment solutions for gig workers. This industry has experienced significant growth in recent years due to the rise of the gig economy and the increasing popularity of temporary work arrangements.
One of the key factors driving the growth of the industry is the changing nature of work. Many workers are now opting for gig work instead of traditional employment, and this trend is expected to continue in the future. As a result, there is a growing need for financial services tailored to the specific needs of gig workers, such as easy and instant access to their earnings.
Market forecasts for the digital banking and instant payment solutions industry are promising. According to a report by Allied Market Research, the global digital banking market is expected to reach $22.3 billion by 2025, growing at a CAGR of 6.8% from 2018 to 2025. This growth is driven by the increasing adoption of digital banking solutions by individuals and businesses.
However, there are also challenges and issues related to the industry. One of the primary concerns is the regulatory environment and compliance requirements. Financial technology companies like Payfare need to ensure they comply with various regulations to operate in different jurisdictions. This includes obtaining necessary licenses and meeting security and privacy standards to protect customer data.
Another challenge is the competitive landscape. The financial technology industry is highly competitive, with many companies offering similar solutions. Payfare faces competition from both traditional financial institutions and other fintech startups. To stay ahead, the company needs to continuously innovate and enhance its offerings to meet the evolving needs of gig workers and maintain its partnerships with leading platforms.
Overall, Payfare operates in a rapidly growing industry with immense potential. Despite the delay in filing its annual financial statements, the company has reaffirmed its financial outlook, indicating its confidence in its business and market position. As the gig economy continues to grow, the demand for digital banking and instant payment solutions for gig workers is expected to rise, providing opportunities for companies like Payfare to thrive.
Related link: Allied Market Research – Digital Banking Market