- Payfare Inc. (TSX:PAY) stock nosedived Friday morning after the Canadian fintech company announced it was losing its biggest client, DoorDash, in early 2025.
- The earned wage access company announced late Thursday that its core services agreement related to DoorDash, Inc.’s DasherDirect card program would not be renewed.
- As a result, Payfare is withdrawing its previously issued 2024 financial guidance for revenue and earnings.
- Shares of Payfare Inc. (TSX:PAY) are down 73.29 per cent, trading at C$2.23 as of 10:32 am ET.
Payfare Inc. (TSX:PAY; OTCQX:PYFRF) stock nosedived Friday morning after the Canadian fintech company announced it was losing its biggest client, DoorDash, in early 2025.
The earned wage access company (EWA) announced late Thursday that its core services agreement related to DoorDash, Inc.’s DasherDirect card program would not be renewed, leading to its shares to fall by more than 70 per cent after markets opened.
DasherDirect is Payfare’s largest program, and revenue derived from the program has been a substantial proportion of Payfare’s total revenues. As a result, Payfare is withdrawing its previously issued 2024 financial guidance for revenue and earnings.
In a news release, Payfare stated and DoorDash will establish a transition plan to begin in the fourth quarter of 2024, and both expect to work collaboratively during the remainder of the term.
Also Thursday, the company announced that Hugo Chan has resigned as a director of Payfare. Chan, who has served on the board for two years “has since moved to become a resident in Asia and has resigned for personal reasons.”
Payfare’s release claimed it has more than $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 from these opportunities could mitigate the impact of the DoorDash non-renewal,” Payfare’s news release stated.
About Payfare
Payfare is a global fintech company offering digital banking, instant payment and loyalty-reward solutions for the gig economy workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms and employers to provide a full-service digital bank account and payment card with instant access to their earnings and relevant cash-back rewards.
Shares of Payfare Inc. (TSX:PAY) are down 73.29 per cent, trading at C$2.23 as of 10:32 am ET Friday after closing at C$8.35 Thursday. Payfare stock had just hit a 52-week high of C$8.90 last month.
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(Top image: Payfare Inc.)