PaySauce - Comprehensive Analysis Report

Summary

PaySauce is a New Zealand-based FinTech company that offers a cloud-based Software as a Service (SaaS) platform for payroll and employment solutions. Founded in 2015 and rebranded in 2017, its core mission is to bring peace of mind to small and medium-sized enterprises (SMEs) by making payroll effortless, simple, and accessible. The company aims to improve the lives of business owners and their employees by simplifying complex administrative tasks, particularly excelling within the agricultural sector in New Zealand. PaySauce is publicly listed on the NZX under the ticker PYS and is strategically expanding its solutions globally, commencing with the Australian market.

1. Strategic Focus & Objectives

Core Objectives

PaySauce's primary objective is to deliver effortless payroll and employment solutions through its cloud-based SaaS platform. The company aims to alleviate the administrative burden on small businesses, allowing them to dedicate more time to their core operations. A significant overarching objective is global expansion, starting with market entry into Australia.

Specialization Areas

PaySauce specializes in providing comprehensive payroll and HR solutions for SMEs. A unique area of expertise is the agricultural sector, particularly dairy farms in New Zealand, where the company holds a strong market position. The platform's capabilities include digital onboarding, mobile timesheets, automated payroll calculations, banking integration, efficient PAYE filing, labor costing, automated general ledger entries, and digital employment contracts. PaySauce also serves a broad range of other industries, including charities, accountants, horticulture, retail, manufacturing, professional services, hospitality, trades, and tech.

Target Markets

The primary target market for PaySauce is small and medium-sized enterprises (SMEs) in New Zealand. Within this, the agricultural sector, especially dairy farms, represents a key segment. The company is actively targeting the Australian market for its initial international expansion, with a focus on replicating its success in the dairy farming sector there.

2. Financial Overview

Funding History

PaySauce has progressively built its financial base through several funding rounds:
May 2015: Initial capital raise of $500,000.
April 2017: Seed funding round totaling $1.5 million.
October 2017: Growth funding round raising $1.145 million.

The company is publicly listed on the NZX (ticker: PYS). As of December 5, 2025, its market capitalization was NZ$42.65 million, marking a 30.68% increase over the past year.

Key financial metrics (as of September 30, 2025, or 1H26 end where specified):
Trailing twelve-month (TTM) revenue: $3.94 million.
Half-year recurring revenue (1H26): $4.5 million, marking a 5% increase.
Processing fee income (1H26): $3.5 million, an increase of 15%.
Period-end Annualized Recurring Revenue (ARR): $9.2 million.
Recurring revenue for the September 2025 quarter: $2.3 million, up 4% year-on-year.
Processing fee revenue (September 2025 quarter): $1.8 million, a 14% year-on-year increase.
Net income (TTM): NZ$838,000.
Cash reserves (excluding funds held for customers) at 1H26 end: $272,000, complemented by undrawn banking facilities of $350,000 for future growth.

PaySauce's "PayNow" feature, which allows employees to access earned pay, has facilitated $11.5 million in payments. The company processes billions of dollars in payroll annually.

3. Product Pipeline

Key Products/Services

PaySauce offers a comprehensive cloud-based SaaS platform designed to streamline payroll and HR functions for SMEs.
PaySauce Payroll Platform:
Description: A mobile-first, cloud-based solution that automates all aspects of payroll and HR administration.
Development Stage: Fully operational and continually enhanced with new features and integrations.
Target Market/Condition: Small and medium-sized businesses across various industries, with a strong focus on the New Zealand agricultural sector. Expanding to Australian businesses.
Expected Timeline: Ongoing updates and feature releases.
Key Features and Benefits:
Automated wage calculations, PAYE tax, KiwiSaver, and leave entitlements.
Compliance with IRD regulations and automated payday filing.
Mobile apps for Android and iOS allowing employees to manage timesheets, leave, and access payslips.
Integrated rostering, digital employment contracts, and banking for automated payments.
Automated general ledger entries.
Third-party integrations with accounting software like Xero, Cashmanager Rural, Figured, and MYOB.
PayNow Feature:
Description: An instant earned wage access service embedded within the payroll platform, allowing employees to access a portion of their earned pay before the regular payday.
Development Stage: Fully integrated and operational.
Target Market/Condition: Employees of businesses using PaySauce, providing financial flexibility.
Key Features and Benefits: Access to earned wages, improving employee financial well-being and retention.
Global Payroll Platform (underlying technology):
Description: The foundational technology being developed to support international expansion, commercialized through the Australian pilot program.
Development Stage: Commercialization underway with initial pilots.
Target Market/Condition: Global businesses, initially targeting the Australian market, with broader application across various jurisdictions in the Asia-Pacific region.
Key Features and Benefits: Scalable architecture for multi-jurisdictional payroll, ensuring local compliance and efficient processing for international operations.

4. Technology & Innovation

Technology Stack

PaySauce operates on a robust, cloud-based SaaS fintech platform specifically engineered for mobile-first user experiences.
Core Platforms and Technologies: The platform leverages cloud infrastructure to ensure scalability, security, and accessibility. It utilizes APIs for seamless integration with key third-party accounting and farm management software.
Proprietary Developments: PaySauce has developed its own comprehensive payroll engine designed to handle complex wage calculations, tax deductions (PAYE, KiwiSaver), and leave entitlements in compliance with New Zealand legislation. This engine is now being adapted for global applicability.
Scientific Methodologies: The system incorporates automated compliance management, ensuring that payroll processing adheres to the latest IRD regulations and payday filing requirements.
Technical Capabilities: The platform supports a full suite of HR and payroll functionalities, including digital onboarding, mobile timesheets, automated general ledger entries, and direct banking integration for automated payments. Its mobile applications for Android and iOS enhance user accessibility and convenience for both employers and employees.

5. Leadership & Management

Executive Team

Asantha Wijeyeratne - Co-Founder, Executive Director, and CEO: With over 25 years of experience in payroll for small businesses, Asantha has a proven track record of building market-leading companies, including SmartPayroll (now Smartly) and SmartBooks. He was recognized with a Queens Service Medal (QSM) in 2013 and was a finalist for Ernst & Young's 2021 Entrepreneur of the Year.
LinkedIn: [https://www.linkedin.com/in/asantha-wijeyeratne-qsm-1a80479/](https://www.linkedin.com/in/asantha-wijeyeratne-qsm-1a80479/)
Jaime Monaghan - Chief Financial Officer: Jaime brings extensive commercial experience in financial and strategic planning from previous roles at Trade Me and Kiwibank. She oversees the substantial volume of funds managed by PaySauce for its customers.
LinkedIn: [https://www.linkedin.com/in/jaime-monaghan-b807a01b/](https://www.linkedin.com/in/jaime-monaghan-b807a01b/)
Jessica McLean - Chief Product Officer: Jess has a background in customer service, payroll consulting, and leading people and culture functions at Catalyst and Catalyst Cloud. She now leads PaySauce's people, product, and customer strategies.
LinkedIn: [https://www.linkedin.com/in/jessicamclean/](https://www.linkedin.com/in/jessicamclean/)
Jacques Labuschagne - Chief Technology Officer: Jacques joined PaySauce in 2023, bringing significant experience in delivering technology solutions and building successful product and service offerings, having started his career in software development.
LinkedIn: [https://www.linkedin.com/in/jacqueslabuschagne/](https://www.linkedin.com/in/jacqueslabuschagne/)

Recent Leadership Changes

September 30, 2024: Co-founder and Chief Technology Officer Troy Tarrant and Chief Operating Officer Mathew Stokes retired from their day-to-day operational roles. Troy Tarrant continues to serve as a strategic consultant.
September 2024: Jacques Labuschagne, formerly Head of Delivery, was appointed as the new Chief Technology Officer. Jessica McLean transitioned from Chief People Officer to Chief Product Officer. These changes followed the completion of a new payroll engine and the company's achievement of profitability.
November 2025: Chris Ridd, former managing director of Xero Australia, was appointed as the executive director for PaySauce's Australian operations, tasked with leading the strategic expansion into that market, initially targeting dairy farms.
LinkedIn: [https://www.linkedin.com/in/chrisridd/](https://www.linkedin.com/in/chrisridd/)

6. Talent and Growth Indicators

Hiring Trends and Workforce

PaySauce has demonstrated robust growth in its workforce, increasing its employee count by 33% over the past year. The current company size ranges approximately from 40-49 employees. This expansion aligns with a 9% increase in its customer base, reaching 8,506 customers by the end of the September 2025 quarter.

Current hiring patterns reflect a focus on strengthening core product development, ensuring quality, and enhancing customer experience. Key roles actively being recruited include:
Onboarding Specialist: A payroll expert role focused on improving the onboarding experience for new customers.
Test Engineer: Specialists in quality assurance and automation to ensure product reliability.
Senior Developer: To expand the development team and broaden the product's capabilities and reach.

These roles indicate a strategic emphasis on refining its core offering, maintaining high-quality service, and preparing for ongoing product expansion and customer acquisition. PaySauce fosters a culture described as "curious, keen and down-to-earth," and provides competitive employee benefits such as health insurance, enhanced parental leave, and an employee share scheme.

7. Social Media Presence and Engagement

Digital Footprint

PaySauce actively maintains a digital footprint across various social media platforms to engage with its audience and reinforce its brand identity. The company's online content primarily centers on simplifying payroll processes, showcasing product features, and providing valuable support for small businesses. They also share customer success stories and highlight their involvement in the community. While specific engagement metrics are not publicly detailed, the consistent activity and outreach through these channels demonstrate a