Everyday People Financial & Smart Employee Benefits Form Joint Venture to Launch Mastercard(R) Healthcare Expense Program Across North America

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Edmonton, Alberta – (Newsfile Corp. – October 31, 2022) – Everyday People Financial Corp. (TSXV: EPF) (“everyday people” or the “company“), a financial technology and consumer finance company, is pleased to announce that following the letter of intent signed on April 22, 2022, EP Care Inc. is a wholly owned subsidiary of EP Care Inc. pursuant to a definitive agreement dated October 27, 2022 of the Company, has a joint venture with SEB Administrative Services Inc. (“SEB Admin“), a subsidiary of Smart Employee Benefits Inc. (TSXV: SEB) (OTCQB: SEBFF) (“SEB“), an insurtech provider of cloud-based end-to-end IT and benefit processing solutions for the life and group insurance market and government, to launch a “Healthcare Spending Account Mastercard® program” that will be a challenger product for traditional employer health offers spending accounts.

Health Expense Accounts (“HSA“) help business owners save on medical expenses by turning an after-tax personal medical expense into a pre-tax business expense. This plan is a smart and efficient option for the modern entrepreneur that helps the plan member minimize coverage gaps between government and employer-sponsored health insurance and other health insurance options.

The Mastercard® HSA solution is unique in the Canadian market and is particularly suitable for small businesses and independent business owners. In Canada, 97% of all businesses are small businesses, which equates to 1.2 million businesses110.3 million employees2 and 0.9 million gig workers3.4.

Together, Everyday People and SEB are the first to introduce this integrated employee healthcare account and credit card program to the Canadian market. This program represents a major specialty product opportunity targeting the HSA market and is currently valued at over $8 billion in premium in Canada5 and over $98 billion in the United States6. Our combined resources and customer base position the new joint venture to capture significant market share across the Canadian HSA market.

“Joining venture with SEB to offer small business owners and their employees a healthcare accounts program is another avenue that Everyday People, along with one of its partners, is offering to people with greater financial flexibility,” said Barret Reykdal, CEO of Everyday People. “Giving small business employees access to a healthcare account helps close coverage gaps, allows individuals to manage healthcare expenses and direct funds according to their healthcare needs. The solution offers an instant, easy-to-use and efficient transaction method in the form of a card-based platform. Today, Everyday People offers similar special solutions for credit card payments in several markets. The HSA solution complements the company’s extensive portfolio of digital banking solutions.”

Within the joint venture, Everyday People will act as program manager and SEB will act as HSA program administrator and adjudicator. SEB has an established customer base of employers who use SEB’s proprietary benefits management and billing solutions (including SaaS solutions) to self-manage healthcare benefits programs for their employees.

“This innovative program will streamline operations, increase accuracy and increase efficiency, and provide employees with a reduction in burden and out-of-pocket costs typically associated with traditional healthcare expense accounts,” said Mohamad El Chayah, COO of SEB and President and CEO of SEB-Admin. “Members of this HSA program receive a health and wellness spending account tied to a Mastercard®. This provides greater financial flexibility in managing health care options and an improved customer experience by enabling immediate reimbursement of health care expenses at the point of sale .”

Sources:

1https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03126.html
2https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2022004-eng.htm
3https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2019025-eng.htm
4https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03147.html
5https://ayacare.com/hsa-wsa/
6https://www.devenir.com/research/2022-midyear-devenir-hsa-research-report/

About Everyday People Financial Corp.

Everyday People is a financial technology and consumer finance company founded on the belief that everyone deserves access to credit, instant payments and the opportunity to own a home. Through our technology-driven ecosystem, our alternative and specialty debt financing programs offer credit and payment cards, prepaid card programs, home ownership, consumer credit and payment management services. Our mission is to help our clients be their financial best self, and our goal is to provide the types of lending products and services that help people add exceptional value to their everyday lives.

For more information visit: www.everydaypeoplefinancial.com.

Financial Corp Daily Contacts

Barret Reykdal
CEO of Everyday People Financial Corp.
[email protected]
1 888 825 9808

Caroline Sawamoto
Investor Relations
[email protected]
1 888 825 9808

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain “forward-looking statements” or “forward-looking information” (collectively, “forward-looking statements”) under applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements regarding the structure and terms of the joint venture, including the HSA program, and the business, plans and operations of the company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that could cause actual results and future events to differ materially from those expressed or implied express such forward-looking statements. These factors include, among others, the cessation of final agreements, expectations and assumptions regarding the Company and other risks and uncertainties, including those described in the Company’s July 27, 2022 filing statement, which is available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/142360

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