Mr. Cihan Tuncay reports

PAYFARE INITIATES STRATEGIC REVIEW PROCESS TO ENHANCE VALUE

Payfare Inc.'s board of directors has initiated, with the assistance of outside legal and financial advisers, a comprehensive and thorough strategic review process to explore and evaluate a broad range of potential options for the company to enhance value.

The foundation, financing and execution of Payfare's continuing programs remain secure with a robust pipeline of potential new opportunities in the gig economy and earned wage access space. To support conversion of these new opportunities and alleviate concentration risk, the board has decided to initiate a strategic review to accelerate these goals. During this process, Payfare remains focused on executing its current business strategy and will continue to provide industry-leading financial solutions for its clients and cardholders. This review process will assess strategic alternatives that may include, but are not limited to, strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination.

In conducting the strategic review, the company's board and management team are committed to acting in the best interests of the company, its shareholders and its stakeholders. There is no deadline or definitive timetable for the completion of the strategic review, and Payfare does not intend to comment further unless the board has approved a specific transaction or otherwise determined that disclosure is necessary or appropriate. There can be no assurances that the strategic review will result in any specific transaction or outcome.

Adviser

The board has engaged Keefe, Bruyette & Woods Inc. as financial adviser to assist with the strategic review process.

Support for DasherDirect program and cardholders through early 2025

Payfare is proud to have built DasherDirect, an award-winning digital banking solution providing cardholders with free instant pay, cashback rewards and other meaningful benefits. Since inception, the program has serviced millions of cardholders and processed billions of dollars of transactions. The level of adoption, user reviews and app store ratings, including its consistent position as the top finance app as ranked by unitQ, demonstrate both the value proposition to cardholders and Payfare's ability to deliver a best-in-class user experience. Payfare will continue its role as a good partner supporting the DasherDirect program and cardholders through early 2025.

Long-term client renewals with Uber and Lyft Inc. executed in 2024

On July 25, 2024, the company announced the long-term renewal of its agreement with Lyft to power the Lyft Direct program. The renewal allows drivers on the Lyft platform to continue benefiting from free instant pay, a feature-rich digital banking product and cashback rewards for years to come. Subsequent to the extension, Payfare also announced new value-added product enhancements to Lyft Direct including balance protection, Lyft Direct savings and more. Active Lyft Direct users have increased by more than 50 per cent year to date, demonstrating the continuing success of the program.

On March 5, 2024, the company announced the launch of the Uber Pro Card, a new program with Uber providing free instant payouts after every trip or delivery, enhanced loyalty features for drivers and delivery people, and backup balance for qualifying users on the Uber platform in Canada, powered by Payfare's leading digital banking app. Active users of the Uber Pro Card have increased by more than five times compared with the legacy program.

Well financed to support future growth

Payfare has over $100-million in cash, cash equivalents and guaranteed investment certificates, and is well capitalized to finance continuing operations and new strategic initiatives. Although the loss of the DasherDirect program will have a substantial impact on the company's revenue profile, Payfare intends to rightsize its operating expenses to align with the near- to midterm reduction in revenues while providing the flexibility to execute on new business and initiatives to build long-term value.

About Payfare Inc.

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

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