We caught up with Marcus Lasarow, Founder and CEO of FinTech startup CashD, a company that helps Australian businesses reduce employee turnover through innovative payroll solutions. We talked about the disconnect between payroll and workforce management, B2B solutions, and the importance of retaining long-term employees.
Marcus, you have 20 years of experience in IT, retail and media, how did you come to start CashD?
I have been building and deploying technical applications for over 15 years. I was heavily focused on products and services, which culminated in 2016 with the sale of CarZapp to Pickles Auctions (Pickles Ventures). CarZapp continues to dominate the B2B automotive marketplace ecosystem, having been the first comprehensive bidding and bidding platform for buying and selling through your mobile device. I then noticed a technical trend towards a focus on human capital, I researched and outsourced my services to corporate payroll, workforce management and resource solutions human. My goal was to uncover the next big opportunity in the human capital space. I found a huge issue and disconnect between payroll and workforce management when it comes specifically to validating an employee’s time worked versus time paid.
What is CashD’s overall mission and service offer?
CashD is redefining compensation by empowering companies to empower their employees 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 accrued salary, prior to payday.
How do other prepayment providers muddy the waters when it comes to understanding the CashD point of difference and value-driven offering?
We have a very different model than a B2C model – like Beforepay and MyPayNow which are directly aimed at consumer models being extremely onerous for consumers including processors which include direct debit, loan contracts, review of bank statements and potential defaults. CashD eliminates these processors and mitigates the risk. CashD is a total digital payment platform, contracting parties of CashD are distribution partners and/or direct employers. In addition, the commercial risk inherent in CashD is greatly reduced compared to a B2C offer.
As companies grapple with the big quit, recruit top talent and retain them, how does CashD enable Australian companies to become a payroll partner?
CashD empowers employers by focusing on benefits first. Some of the benefits include:
- Staff retention. Several research studies show that the internal flexibility of early access to salaries improves staff retention.
- Attract and recruit new employees to fill vacancies faster.
- Improves productivity and reduces sick leave. When staff don’t care about money, they’re more focused, productive, and much less likely to take sick days.
- Protects staff against “sharking” payday loans, protecting your staff from the perils of unscrupulous and expensive payday lenders.
- Improves the well-being and quality of life of staff. With financial stress removed with easy access to advance pay, your staff are happier and free to enjoy life.
In addition to the benefits above, the CashD solution offers limit and security controls in a personalized employer dashboard to protect their most valuable asset, their employees.
In your opinion, who or which companies will benefit the most from the adoption of the CashD offer?
Market adoption has been strong in contractor management companies with user profiles containing white and blue collar workers, security guards or facility workers. One could easily say that the CashD solution appeals to all workers, regardless of their sector of activity or their professional status. Our strongest alignments are our distribution partners who hold tens of thousands of registered employers and, in turn, millions of workers. Currently, CashD holds five strong distribution partnership agreements, which translates to over two million workers.
What is the biggest challenge for CashD in terms of explaining their 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 tied to an intrusive high interest bearing product.
What’s next for CashD in 2022 – What does “success” look like to you?
CashD’s real motivation is to bring back the cash economy through technology. “Success” is the successful imprint of the wage revolution adopted and imprinted in today’s economy. The success of CashD will be measured by the speed at which outdated old school payroll cycles are replaced by the CashD solution.