My CashSender.com pitch appeared on the Dragons’ Den back in Fall of 2011.
I started development on the CashSender site back in 2005, and the site finally launched in 2010. The concept behind the site was that I did not like PayPal taking 10, 20 and sometimes 30% of my gross revenues with their steep fees.
On small value payments their fee structure of 2.9% plus 30 cents per transaction was making them rich and me poorer. So I decided to tackle the problem head on, by creating a competing payment system that would be geared to helping fellow small business owners and entrepreneurs so that they could keep more of their online sales revenues, by offering lower fees.
They key to providing low fees is removing credit cards from the business model. Credit cards carry high risk and high fees due to online fraud and chargebacks. And those fees must be passed on to the merchants by way of higher fees.
So by making CashSender work with bank account sourced credit instead of credit cards, I could pass the savings on and offer much lower fees to my clients.
The company is based in Vancouver, Canada, and serves a number of countries. Unfortunately the very high cost of money service business registration in the US precludes the service from being able to operate in the US. A million dollar investment would be required to expand to the US, and that is not a very likely scenario in the future.
So for now, CashSender will continue helping small business owners here in Canada and Europe, and I thank you for reading this post.