We sat down with Marcus Lasarow, Founder and CEO of FinTech startup CashD, a company empowering Australian businesses with the ability to reduce employee turnover through innovative payroll solutions. We talked about the disconnect between payroll and workforce management, B2B solutions, and the importance of retaining employees for the long term.
Marcus, you have 20 years of experience in the IT, retail and media space, how did you come to launch CashD?
I have been building and deploying technical applications for more than 15 years. He was very focused on the product and service space, this culminated in 2016 with the sale of CarZapp to Pickles Auctions (Pickles Ventures). CarZapp continues to dominate the B2B auto marketplace ecosystem as it was the first full-featured bidding and auction platform for buying and selling through your mobile device. Then I noticed a technical trend towards a focus on human capital, I researched and contracted my services for Payroll, Workforce Management and Human Resources Solutions companies. My goal was to discover the next big opportunity within the human capital space. I found a big issue and disconnect between payroll and workforce management with regards specifically to validating an employee’s time worked versus paid time.
What is CashD’s overall mission and service offering?
CashD is redefining pay by enabling companies to empower their workers to choose how and when they get paid. We bring together open banking, payroll and finance to offer a CashD On-Demand Pay solution. Employees can better align their income and expenses by accessing a portion of their accumulated salary, before payday.
How are other prepaid access providers muddying the waters when it comes to understanding CashD’s point of difference and value-based offering?
We have a very different model than a B2C model, like Beforepay and MyPayNow, which are direct-to-consumer models that are extremely onerous for consumers, including processors that include a direct debit, loan agreements, bank statement scrutiny, and potential defaults. CashD removes these processors and mitigates risk. CashD is a total digital payment platform, CashD’s contracted parties are channel partners and/or direct employers. Furthermore, the inherent business risk of CashD is strongly mitigated compared to a B2C offering.
With companies struggling with great resignation and recruiting top talent and retaining them, how does CashD empower Australian companies as a payroll partner?
CashD empowers employers by putting benefits first. Some of the benefits include:
- Staff retention. Multiple research studies show that the internal flexibility of Early Wage Access improves staff retention.
- Attract and onboard new staff, therefore filling vacancies faster.
- Improve productivity and reduce sick leave. When staff are not stressed about money, they are more focused, more productive and much less likely to take sick leave.
- Protects staff from payday loans from “loan sharks”, thus protecting your staff from the dangers of unscrupulous, high-priced payday lenders.
- Improves the well-being and quality of life of the staff. With financial stress removed by easy early access to salaries, your staff are happier and freer to enjoy life.
In addition to the above benefits, the CashD solution offers security limits and controls within a personalized employer dashboard to protect your most valuable asset, your employees.
Who or what companies do you think will benefit most from adopting the CashD offer?
Market adoption has been strong in contractor management companies with user profiles that include white and blue collar workers, security guards, or facility employees. It could be comfortably argued that the CashD solution appeals to all workers, regardless of their industry or employment status. Our most powerful lineups are our channel partners who have signed up tens of thousands of employers and, in turn, millions of workers. Currently, CashD has five strong channel partner agreements that translate to more than two million workers.
What is the biggest challenge for CashD in terms of explaining your point of difference to customers?
Our biggest challenge is educating employers on the fundamental difference between what CashD offers versus payday loans, credit advances, or any personal loan associated with an intrusive, high-interest bearing product.
What’s next for CashD in 2022? How about ‘success’?
The real motivation behind CashD is to bring back the money economy through technology. ‘Success’ is the successful stamping of the wage revolution that is being embraced and imprinted in today’s economy. The success of CashD will be measured by the speed at which old-school, legacy payment cycles are replaced by the CashD solution.