We sat down with Marcus Lasarow, Founder and CEO of FinTech start-up CashD, a company that empowers Australian businesses to reduce employee turnover through innovative payroll solutions. We talked about the separation 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 found CashD?
I have been building and deploying engineering applications for over 15 years. I focused heavily on the products and services space, culminating in the sale of CarZapp to Pickles Auctions (Pickles Ventures) in 2016. CarZapp continues to dominate the B2B car 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 human capital, I researched and commissioned my services with corporate payroll, workforce management and human resource solutions. My goal was to uncover the next big opportunity in human capital. I’ve encountered a massive problem and disconnect between payroll and HR management, particularly with regards to validating an employee’s hours worked versus paid time.
What is CashD’s overall mission and service offering?
CashD is redefining pay by enabling companies to empower their employees to choose how and when they are paid. We bring open banking, payroll and finance together to provide a CashD On-Demand Pay solution. Employees can better align their income and expenses by accessing a portion of their salary accrual before payday.
How do other early pay access providers muddy the waters when it comes to understanding the difference between CashD and the value-based offering?
We have a very different model than a B2C model – the likes of Beforepay and MyPayNow, which are direct consumer models that are extremely onerous for consumers, including processors, that involve a direct debit, loan agreements, checking of bank statements, and potential non-payment. CashD eliminates these processors and reduces risk. CashD is a fully digital payment platform, the contracting parties of CashD are sales partners and/or direct employers. In addition, the inherent business risk of CashD is greatly reduced compared to a B2C offering.
How is CashD empowering Australian companies as a payroll partner when companies are struggling with the big exit and are recruiting and retaining top talent?
CashD empowers employers by focusing primarily on the benefits. Some of the benefits include:
- employee retention. Several research studies show that the flexibility of internal early wage access improves employee retention.
- Attract and retain new employees to fill vacancies faster.
- Improves productivity and reduces sick leave. When employees aren’t stressed about money, they’re more focused, productive, and take far fewer sick days.
- Protects employees from “loan shark” payday loans, protecting your employees from the dangers of unscrupulous, high-priced payday lenders.
- Improves the well-being and quality of life of employees. Because financial stress is removed with easy early access to salaries, your employees are happier and enjoy life more freely.
In addition to the above benefits, the CashD solution offers limit and security controls within a custom employer dashboard to protect your most valuable asset, your employees.
In your opinion, who or which companies will benefit most from the introduction of the CashD offer?
Market acceptance has been strong among contractor management companies with user profiles that include clerks and workers, security guards, or facility workers. It could easily be argued that the CashD solution appeals to all workers, regardless of their industry or employment status. Our strongest alignments are our channel partners who have tens of thousands of employers and therefore millions of employees. CashD currently has five strong distributorship agreements representing over two million workers.
What is the biggest challenge for CashD when it comes to explaining the difference to customers?
Our biggest challenge is educating employers on the fundamental difference between what CashD offers versus payday loans, loan advances, or any other personal loan that comes with a high-interest, pushy product.
What’s next for CashD in 2022 – What does “success” look like to you?
CashD’s true motivation is to bring back the cash economy through technology. “Success” is the successful imprinting of the wage revolution, embraced and imprinted in today’s economy. CashD’s success will be measured by the speed with which outdated, legacy pay cycles are replaced with the CashD solution.