Coinbase users in the United States will be able to fund their accounts by directly depositing their paycheck. Users could also receive their salary as a dollar balance or translate it into cryptocurrency instantly.
Coinbase cryptocurrency exchange has announced plans to launch a feature that will enable U.S-based clients to deposit their paycheck directly into their online accounts. The official company blog post announcement said the feature would be available in the next few weeks. According to the release, the firm will allow users to make direct crypto paycheck deposits for any percentage of their paychecks. The company stated:
“Direct deposit coming soon: customers will be able to deposit any percentage of their paycheck into their Coinbase account in crypto or USD.”
Coinbase crypto-paycheck service aims to eliminate the need for banks
Cryptocurrency enthusiasts who use the new “Get Paid in Crypto” service could receive their paychecks in Bitcoin, Ethereum, or any other cryptocurrencies available on the exchange. The users could also receive their payment in USD and spend their funds via the Coinbase debit card. The firm’s customers could also select the option of receiving payments in DAI or USDC and earn interest on them. The blog post said:
“Now, you’ll save time on the extra steps it takes to move money so you can immediately earn interest on your income or earn crypto rewards with your Coinbase Card. Plus, you’ll pay zero transaction fees on direct deposit funds, so you have instant and free access to the crypto-economy.”
The paycheck in crypto service aims to eliminate the need for customers to rely on banks to make deposits on their accounts. The exchange users have always complained about tedious and time-consuming bank transfers. The exchange said further it was creating an infrastructure that will enable companies to pay their workers directly in cryptocurrencies.
An automatic paycheck distribution feature
Users who opt to use the paycheck in crypto feature will, in a few weeks, be able to create and modify direct payment services through a few clicks in the Coinbase app. The company will also create an automatic paycheck distribution feature or provide instructions to enable manual deposits via an employer’s payroll system. Max Branzburg, vice president of product at Coinbase, said in a blog post:
“With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase […] we’re determined to deliver the most trusted full suite of crypto-first financial services to our 68 million users.”
The Coinbase paycheck in crypto service joins other Fintech companies that allow users to deposit their paychecks. They include the stock trading app Robinhood and PayPal, whose clients can deposit their paychecks directly into the platforms.
